Google has reportedly placed restrictions on Meta’s use of its Gemini AI models after Meta requested more processing power than the competing tech group could offer, according to sources who wished to remain unnamed.
Google, which is owned by Alphabet, informed Meta in March that it was unable to provide the entire Gemini capacity that the firm had attempted to acquire. The deficit caused several of Meta’s internal AI initiatives to be disrupted and delayed.
The source claims that a number of other Google clients have also been impacted, albeit to a lesser degree. Meta has been especially affected due to its extraordinarily high demand for Google’s models.
Meta has urged employees to use AI tokens—the units used to gauge AI usage—more effectively due to limitations.
Corporations are still having trouble securing enough processing capacity to meet the rising demand for AI services, despite continuing to invest billions in chips and data centers.
Although Google Cloud’s revenue reached USD 20 billion in the first quarter that ended in March, CEO Sundar Pichai claimed that limitations on processing power hindered even greater growth and contributed to the cloud unit’s backlog almost doubling quarter over quarter.
