Google's internal engineers are reportedly hitting AI capacity constraints, leading to Gemini 3.5 Pro being months behind schedule, despite the company guiding $180B-$190B in capex this year. Q1 capex already doubled year-over-year to $35.7B, with the CFO indicating a significant increase for 2027.
Even with record capex, Google's internal AI compute demand outstrips supply, indicating extreme, unyielding pressure on GPU and datacenter capacity.