Alphabet NASDAQ:GOOG has reportedly limited Meta's access to Gemini AI models, a sign that the AI infrastructure crunch is now hitting even the biggest technology companies.
The Financial Times reported that Google has placed usage restrictions on several customers because of capacity constraints, with Meta NASDAQ:META among the most affected. The limits have disrupted some internal projects and pushed Meta to tell employees to use AI resources more efficiently.
Meta had been using Gemini for work such as content moderation and scam detection because the models reportedly outperformed some of its internal systems. The company is now relying more on its own Muse Spark model as it tries to reduce dependence on outside AI providers.
the story is about power in the AI supply chain. Companies that control data centers, chips and cloud capacity may gain more leverage as demand keeps rising.