Meta Platforms now ranks as one of Microsoft’s largest artificial intelligence customers. The company invests hundreds of millions of dollars annually to access AI models via Microsoft Azure. Meta processes trillions of tokens weekly on the platform to support its software development.
Heavy AI spending contributed to a 91% year-over-year decline in free cash flow. Second-quarter free cash flow dropped to $784 million. Revenue increased 28% during the same period. Investors are currently debating the long-term returns on these massive capital expenditures.