Meta Platforms reported a 91% plunge in second-quarter free cash flow to $784 million, down from $8.55 billion a year earlier, as it pours billions into AI infrastructure. The decline sent Meta shares down 10% in extended trading. CEO Mark Zuckerberg defended the spending on an earnings call, arguing investments aim to build new AI-driven businesses, including personal AI agents. The cash flow pressure echoed Alphabet, which reported its first-ever quarter of negative free cash flow. Meta’s free cash flow was its weakest since late 2022, reviving memories of its Reality Labs division, which has accumulated more than $80 billion in operating losses. By contrast, Microsoft also reported a decline in free cash flow, but shares rose after strong Azure cloud growth demonstrated AI investments supporting a high-margin business. Meta expects to spend between $130 billion and $145 billion on capital expenditures in 2026.