Google Declines Full Gemini Compute Supply to Meta, Forcing $600B Data Center Investment by 2028

According to the Financial Times, Google informed Meta around March this year that it cannot supply the full amount of Gemini model compute capacity Meta requires, disrupting and delaying multiple internal AI projects. The source cited three people familiar with the matter.

To reduce reliance on external compute, Meta plans to invest $600 billion in U.S. data centers by 2028. The move comes as Google's cloud business faces severe supply constraints, with unfulfilled orders exceeding $460 billion as of Q1 2024, according to Google CEO Sundar Pichai's disclosure.