Meta's AI bill turns free cash flow negative and rattles investors
Revenue beat forecasts, but higher capital spending guidance and a $2.1bn cash outflow in the third quarter sent the shares down about 7 per cent.
Topic
AI investment
The capital, energy and infrastructure behind artificial intelligence, and what it returns.
Big Tech earnings put AI spending to the test after Meta sell-off
Alphabet, Microsoft and Amazon report this week as investors question whether record capital spending is turning into cash, a week after Meta's shares fell about 7 per cent.
Nvidia's $164.5bn of data centre guarantees draw scrutiny as AI cloud firms wobble
The chipmaker is underwriting leases and buying spare capacity to keep demand for its processors strong, leaving it more exposed if AI customers struggle to pay.