Google adjusts Gemini's usage limits in response to complaints about AI costs and quotas; CEO notes firms are exceeding budgets.

Google has implemented changes to Gemini's usage limits following customer feedback regarding rapid quota depletion. The company's CEO highlighted that many firms are exceeding their AI token budgets.

Sources:
9to5Google+1
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Sources: Business Insider9to5Google
Google has announced adjustments to its Gemini AI usage limits in response to client feedback about quickly hitting quotas and soaring costs. As businesses adapt to new AI capabilities, CEO Sundar Pichai noted, "Companies are already blowing through their annual token budgets and it's only May."
The tech giant's new compute-used system introduces a refresh cycle every five hours until the weekly limit is reached, reflecting the complexity of user prompts and tool utilization.
In a bid to alleviate cost pressures, Google highlighted that heavy tasks like Deep Research require more resources and announced plans to deliver better usage analytics to help users optimize their consumption.
Additionally, Pichai remarked that a strategic shift to using a blend of Flash and other advanced models could yield substantial savings.
Data indicated that customers could save over $1 billion annually should they transition the majority of their workloads to a combination of Gemini 3.5 Flash and other models.
In a notable shift, Google has made 3.1 Flash-Lite prompts free, stating that they will no longer count against users' quotas.
Furthermore, the company rectified a glitch that previously drained quotas for some users over minimal video usage, emphasizing its commitment to customer satisfaction and efficient resource management.
As AI complexity increases and processes lengthen, Dan Morgan, analyst at Synovus Trust, noted, "long-running processes have become the norm."
Google, benefiting from its TPU chips, boasts lower AI compute costs—up to 75% less than competitors—ensuring its alignment with market demands while addressing client concerns.
Sources: Business Insider
Google is adjusting usage limits for its Gemini AI following complaints from businesses about exceeding budgets. CEO Sundar Pichai highlighted that some companies are rapidly depleting their annual token budgets and emphasized potential savings with a more strategic usage of AI models.
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The Headline

Google adjusts Gemini usage limits amid complaints

Key Facts
  • Google adjusted Gemini’s usage limits in response to customer complaints about exceeding budgets for AI services.9to5Google
  • The new compute-used approach implements a 5-hour refresh until the weekly limit is met, taking into account prompt complexity and tool usage.9to5Google
  • Google clarified that errors do not count against the limits, stating that unsuccessful requests won't incur charges.9to5Google
  • Heavy tasks require more compute resources, prompting Google to provide detailed usage breakdowns and notifications.9to5Google
  • Google announced that 3.1 Flash-Lite prompts are now free and will not count against quotas.9to5Google
  • The CEO of Google indicated that companies are already exceeding their annual token budgets as early as May.Business Insider1
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Background Context

Context on Gemini usage and company strategies

Key Facts
  • Pichai mentioned that token usage has increased sevenfold to 3.2 quadrillion tokens, influencing the budget concerns.Business Insider1
  • If top customers shift their AI workloads to Gemini models, they could save more than $1 billion annually.Business Insider1
  • Dan Morgan highlighted that as AI agents become more complex, longer processes are becoming common, increasing demand and costs.Business Insider1
  • Notably, Google incurs costs that are 50% to 75% lower than rivals due to utilizing its own TPU chips.Business Insider1
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