The promise is what Meta Platforms, Inc. (NASDAQ:META) can do with AI and the reward for investors. But the cost associated with the AI ambitions is steep, even for a company with deep pockets. But no pain, no gain. We've all heard that. Meta's capital expenditures shot up to $31.1 billion in Q2, from $19.4 billion in the same quarter last year. The company generated only $784 million in free cash flow in the latest quarter, down sharply from $10.6 billion a year ago. All that is happening because of soaring AI infrastructure costs. Meta expects to spend up to $145 billion on capex in 2026, primarily on infrastructure buildout.
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