Google told Meta it cannot have enough computing power to run Gemini AI models at the scale Meta wanted. The Financial Times reported this. Meta asked for more capacity than Google could provide. Google said no.
Imagine walking into a restaurant and ordering every item on the menu. The chef says he cannot cook that much food. You leave angry. This is that situation except both parties have market caps larger than the GDP of Switzerland and neither one makes anything you can hold in your hands.
Meta wanted to use Google's AI. Meta also builds its own AI. Meta apparently decided its own AI was not good enough or too expensive or too slow. So Meta went to Google. Google builds AI models and rents them out to anyone willing to pay. Except when it does not want to. Like now.
The computing capacity required to train and run these models could power a medium-sized city. Instead it powers chatbots that write cover letters nobody reads and generate images of people with seven fingers. Progress.
Retail traders saw this headline and immediately started scanning for ticker symbols to buy calls on. They found none. The headline does not mention stock prices or earnings or guidance. It mentions two companies that could not agree on how much server space one would rent from the other. Traders refreshed their screens anyway. Checked premarket. Looked for unusual options activity. Found nothing. Went back to losing money on 0DTE SPY puts.
Google limiting Meta's access to Gemini means absolutely nothing for your portfolio. It does not predict the next rate cut. It does not forecast Q3 revenue. It does not signal a recession or a bull run or any other event you pretend to understand. Two companies had a conversation about infrastructure. One said no to the other. You were not invited to that conversation and learning about it third-hand from the Financial Times will not make you richer.
But sure, buy the dip.
Photo by Julio Lopez on Unsplash
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