According to a report by the Financial Times, Google, a subsidiary of Alphabet, informed Meta in March that it could not fulfill the full capacity of its Gemini AI models that Meta sought to purchase. This limitation has disrupted some of Meta's internal AI initiatives, as the company has an exceptionally high demand for Google's AI capabilities.
Other clients of Google have also faced similar issues, albeit to a lesser extent. In response to these restrictions, Meta has advised its employees to optimize their use of AI tokens, which measure AI consumption. The broader context reveals that despite significant investments in chips and data centers, companies are struggling to meet the increasing demand for AI services.
Google's cloud revenue reached $20 billion in the first quarter of 2026, but CEO Sundar Pichai noted that constraints on computing power hindered even greater growth and contributed to a backlog that nearly doubled from the previous quarter