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The Economic Times
The Economic Times

INSANE: Metas ai splurge lays bare its compute conundrum | Vintage Vibes

Meta can simultaneously fuel its own AI ambitions and rent out its scarce computing capacity to bolster returns, CEO Mark Zuckerberg signaled on Wednesday. ​The problem is: investors aren't buying it.

The Instagram owner is splurging ​billions to build compute - chips, servers, energy and data centers that power AI - leaving it with free cash flow of just $784 million ​in the second quarter to run and grow its business. That collapse, of 91% from a year ago, drove its stock down 9% premarket on Thursday.

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