Google literally limited Meta's Gemini usage because of capacity constrains, so yes paying customers are being turned away:
https://www.ft.com/content/c5d52f72-71ef-40bc-bad3-61afdba8b...> Everyone spending crazy money on capex right now says they have a crushing backlog and need more compute to protect their share price. I highly doubt the demand exists today at current prices if the big 3 hyperscalers magically had an extra 2-3GW of compute.
I don't get this though: The theory is all these hyperscalers are simultaneously spending buttloads of money on CapEx to the extent it affects their stock price, and then they would lie about the demand to protect their share price. Why would they do all that when they could just do nothing and keep their firehoses of existing business revenue untouched and maintain their stock prices on the upward trajectory they already were -- like Apple?
> It’s not like Anthropic and OpenAI are turning away customers offering to pay API pricing..
We don't know, but clearly Anthropic has been struggling to keep Claude's 9's better than GitHub's 9's even after paying through the nose for capacity from competitors like SpaceX and Google.
I suspect OpenAI is managing only because Altman scrounged for compute like a madman way in advance, and most of its traffic is free users who can be arbitrarily bumped down to weaker models whenever compute is low. Whenever Anthropic does that Claude Code degrades and people complain.
> Everyone spending crazy money on capex right now says they have a crushing backlog and need more compute to protect their share price. I highly doubt the demand exists today at current prices if the big 3 hyperscalers magically had an extra 2-3GW of compute.
I don't get this though: The theory is all these hyperscalers are simultaneously spending buttloads of money on CapEx to the extent it affects their stock price, and then they would lie about the demand to protect their share price. Why would they do all that when they could just do nothing and keep their firehoses of existing business revenue untouched and maintain their stock prices on the upward trajectory they already were -- like Apple?
> It’s not like Anthropic and OpenAI are turning away customers offering to pay API pricing..
We don't know, but clearly Anthropic has been struggling to keep Claude's 9's better than GitHub's 9's even after paying through the nose for capacity from competitors like SpaceX and Google.
I suspect OpenAI is managing only because Altman scrounged for compute like a madman way in advance, and most of its traffic is free users who can be arbitrarily bumped down to weaker models whenever compute is low. Whenever Anthropic does that Claude Code degrades and people complain.