Google restricts Meta from using Gemini: AI computing power shortage is reshaping the industry landscape

Google Restricts Meta, AI Computing Power Competition Officially Enters a New Phase

(Source: Google)

The wave of artificial intelligence continues to drive the development of the global tech industry, but the recent news that Google (Alphabet) is restricting Meta's use of the Gemini AI model has once again made the market realize that the biggest bottleneck is no longer AI model capabilities, but "computing power." Google stated that due to its own computing power resources being in short supply, it has imposed restrictions on Meta's use of the Gemini model. This indicates that even the world's most valuable tech company is starting to face shortages of GPUs, data centers, and AI computing resources. The market's focus has gradually shifted from AI model competition to another issue: whoever possesses the most computing power will have the dominant position in the future AI market.

Why Is Google Restricting Meta? The Real Reason Is Not Business Competition

In the past, Meta used the Gemini model for tasks such as content moderation and fraud detection. Since some tasks performed better than its own models, Meta continued to utilize Google's AI capabilities. However, as Google Cloud's customer base rapidly expands and demand for the Gemini model itself continues to rise, the company has begun to prioritize allocating computing power to its own products and key enterprise clients, thus restricting Meta's usage scale. This also means that AI model demand far exceeds current supply, and cloud computing power has become a critical strategic resource for enterprises. At the same time, the importance of AI infrastructure continues to grow, and the computing power shortage will drive sustained growth in AI infrastructure.

Google's Restriction Event Also Refocuses the Market on the AI Infrastructure Supply Chain

To reduce reliance on external models, Meta has started accelerating the deployment of its own AI model, Muse Spark, and may also continue to increase purchases of GPUs, data centers, and AI servers. On the other hand, Musk's xAI announced that Grok 4.5 has begun internal testing at Tesla and SpaceX, with plans to release new versions more frequently. In other words, the AI model competition will persist, but the real beneficiaries are likely to be companies providing underlying infrastructure, including: NVIDIA GPUs, TSMC's advanced process, CoWoS advanced packaging, cloud data centers, and AI networking equipment. These areas remain the main focus of AI investment.

Mag 7 Faces New Challenges, AI Investment Enters an Efficiency Race

Beyond computing power issues, the market is also reassessing the valuations of large tech stocks. In recent years, Amazon, Google, Microsoft, Meta, and Oracle have continuously increased capital expenditures, with AI investment scales reaching new highs. However, rising capital expenditures are gradually eroding free cash flow.

Market expectations:

• The EPS growth rate of the Mag 7 will gradually slow down
• The profitability of other S&P 500 companies is starting to catch up
• The valuation premium of tech stocks may gradually shrink

Therefore, in addition to focusing on AI development directions, investors are also paying more attention to whether companies can effectively convert AI investments into actual profits.

What Will the Market Focus on Next?

Following the Google restriction event, the market will continue to monitor three key indicators:

1. Whether Google Cloud revenue continues to grow If Google Cloud revenue maintains rapid growth in the future, it means the market believes this is only a short-term supply-demand imbalance, not a cooling of demand.

2. Whether Meta fully adopts its own AI models If Meta continues to reduce reliance on external models, it will signal a reshuffling of the AI ecosystem.

3. Whether TSMC's CoWoS capacity remains tight If advanced packaging lead times extend again, it will also mean that AI computing power demand still far exceeds supply, and the overall AI supply chain still has room for growth.

AI Investment Boom Continues: Gate Stock Builds a New Entry Point for Global Stock Investment

With the rapid development of the AI industry, more and more investors are looking to simultaneously position themselves in major tech markets such as the US, Hong Kong, and South Korea. To enhance the convenience of global investment, Gate has officially launched stock trading services, supporting both Web and App platforms while also opening up the Korean stock market, making global stock investment more convenient.

Gate Stock currently supports over 12,500 stocks and ETFs, covering more than 10,000 US stocks and ETFs, over 1,500 Hong Kong stocks, and the top 1,000 listed companies on the Korea Exchange (KRX). Popular AI and tech targets include: NVIDIA, Apple, Amazon, Meta, Tesla, Alphabet (Google), Samsung Electronics, SK Hynix, NAVER, Xiaomi, Tencent, and Meituan. Investors can allocate global AI and tech leaders through a single platform.

Trade Stocks Directly with USDT, Lowering the Barrier to Global Investment

Compared to traditional cross-border investment, Gate Stock provides a more simplified investment process. Eligible users can directly use USDT to invest in US, Hong Kong, and Korean stocks without needing to open an overseas brokerage account or manually convert USD, HKD, or KRW, significantly lowering the barrier to global investment.

Additionally, the platform offers:

1. Minimum fractional shares trading of 0.01 shares
2. A single stock account for US, Hong Kong, and Korean stocks
3. Real-time viewing of holdings, gains/losses, and asset allocation
4. Support for corporate actions and dividend rights

Making global stock management more centralized and efficient.

7×24 Hour Trading, Seizing Every Key Moment in the AI Market

The AI industry updates information rapidly, and corporate earnings reports, product launches, and major collaborations can often impact stock prices. Therefore, Gate Stock now supports 7×24 hour round-the-clock trading, covering pre-market, after-hours, overnight, and weekend sessions in addition to regular trading hours.

Initially, 197 stocks support round-the-clock trading, including popular tech companies such as NVIDIA, Apple, Meta, Amazon, Tesla, Google, Samsung Electronics, and SK Hynix. For investors looking to respond instantly to global market news, this effectively enhances trading flexibility and market reaction speed.

Gate Stock Builds a One-Stop Investment Platform for Digital Assets and Global Stocks

With the official launch of the Web platform, Korean stock market, and 7×24 hour round-the-clock trading, Gate Stock continues to refine its global stock services. Currently, the platform not only offers trading in US, Hong Kong, and Korean stocks but also integrates digital asset and stock management, allowing users to complete global asset allocation through a single account.

For investors focused on AI, semiconductors, cloud computing, and the global tech industry, whether they are positioning in Google, Meta, NVIDIA, or Asian AI supply chain companies like Samsung Electronics and SK Hynix, they can quickly participate in global markets via Gate Stock and seize the investment opportunities brought by the long-term growth of AI.

Summary

Google's restriction on Meta's use of Gemini is not just an adjustment in cooperation between two tech giants; it reflects that global AI development has entered a new phase of "computing power competition." When GPUs, data centers, and advanced packaging become core resources for AI development, the importance of the entire AI industry chain also rises. For investors, beyond focusing on the short-term performance of individual companies, they should also pay attention to the long-term trends of the overall AI ecosystem, semiconductor supply chain, and cloud infrastructure. Through the global stock trading services provided by Gate Stock, investors can use USDT to one-stop position in US, Hong Kong, and Korean stock markets, capturing the global investment opportunities brought by the continued development of the AI industry.

FAQ

1. Why did Google restrict Meta's use of Gemini AI? The main reason is not business competition, but Google's own insufficient computing power resources. Due to the rapid increase in demand for the Gemini model, Google prioritizes allocating computing power to its own products and key enterprise clients, thus restricting Meta's usage scale.

2. What investment opportunities does the AI computing power shortage bring? Increased demand for computing power will benefit companies related to AI infrastructure, including GPUs, semiconductors, advanced packaging, cloud data centers, and AI server supply chains. Therefore, companies like NVIDIA, TSMC, and SK Hynix are receiving high market attention.

3. What are the features of Gate Stock? Gate Stock supports over 12,500 US, Hong Kong, and Korean stocks and ETFs, allows direct trading with USDT, offers fractional share investments as low as 0.01 shares, 7×24 hour round-the-clock trading, and dual-platform operation on Web and App, helping investors participate in global stock markets more conveniently.