Business · 1h ago
Meta's AI Splurge Consumes 91% of Free Cash Flow
Meta reported strong Q2 2026 revenue growth, but aggressive AI spending slashed free cash flow by 91%. The company's capital expenditures surged as it invested heavily in AI infrastructure. This leaves Meta with limited financial flexibility despite solid top-line performance.
Meridian48 take
The headline is accurate but understates the risk: Meta is betting its entire cash generation on AI, leaving little room for error if returns don't materialize quickly.
metaai-spending