Bloomberg reports $GOOG engineers are hitting capacity constraints when they try to use AI internally. At a company guiding $180B to $190B of capex this year.
Gemini 3.5 Pro is months behind schedule. Engineers are now required to use AI to write code and there isn’t enough compute to go around. Q1 capex was $35.7B, more than double a year ago, and the CFO already said 2027 will significantly increase from there.
Grok thinks there are high odds that Google expands the AI compute deal with SpaceXAI. Anthropic Fable is less certain on Google but thinks someone big announces a deal in Q3 and more deals in Q4. Anthropic think some new major tenant for SpaceXAI deal (anyone) is announced by end of Q3 is 70–80%. SpaceXAI has signed three deals in ~six weeks and Musk has said he’s actively seeking customers. The base rate here is high. The question is who, not whether. Google odds are as high as 60%, 35-40% for Anthropic and then others like Microsoft.
Bloomberg reports $GOOG engineers are hitting capacity constraints when they try to use AI internally.
At a company guiding $180B to $190B of capex this year.
Gemini 3.5 Pro is months behind schedule. Engineers are now required to use AI to write code and there isn't enough… pic.twitter.com/MjPnl5DQ0g
— KawzInvests (@KawzInvests) July 16, 2026
You want to be bearish on compute right before Google raises Capex for the third time this year (Save this).
Q4 2025, Google told you capex would be $175-185 billion in 2026 roughly double what they spent the year before and the market called it excessive.
Q1 2026 came in at… pic.twitter.com/DTfwztk5Gr
— Milk Road AI (@MilkRoadAI) July 16, 2026
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
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It makes no sense that they did not reserve capacity for their own engineers. Also, I just tried Gemini without issue in thinking mode.
Grok 5 was also promised by the end of 2025. So delay is more than 6 months.