Google Cloud Grows $20B Despite Rationing AI Capacity

Google informed Meta around March that it could not supply the full computing capacity requested for Gemini models. The shortfall delayed some Meta AI projects and prompted efficiency measures at the company. Google Cloud revenue reached $20 billion for the quarter.

5 sources·Jun 28, 4:58 PM(22 hrs ago)·1m read

Google Cloud Grows $20B Despite Rationing AI Capacity

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Google told Meta around March that it could not meet the full Gemini AI computing capacity the social media company had sought to purchase. The shortfall disrupted and delayed some of Meta’s internal AI projects. Meta has been particularly affected because of its high demand for Google’s models.

Several other Google clients have also faced capacity limits, though to a lesser extent. Meta responded by encouraging staff to use AI tokens more efficiently. Revenue at Google Cloud grew to $20 billion in the first quarter ended March.

CEO Sundar Pichai said computing power constraints prevented even higher growth and contributed to the cloud unit’s backlog nearly doubling from the prior quarter. The Financial Times reported the details, citing people familiar with the matter. Reuters could not immediately verify the account.

Google and Meta did not respond to requests for comment outside business hours.

technology ai cloud-computing