Zuckerberg raises Meta's AI spending to $130 billion — investors await return on neural network investments

Meta reported Q2 revenue of $47.5 billion, above expectations of $44.8 billion, but investor focus shifted to rising AI costs. Quarterly AI spending rose 55% to $42 billion, while free cash flow plummeted from $8.5 billion a year earlier to $784 million. The company raised the lower bound of its annual investment plan by $5 billion to $130 billion, directed primarily at AI infrastructure such as data centers and computing power. During an investor call, Meta did not provide concrete plans for using the additional capacity or measuring future returns. CEO Mark Zuckerberg stated the company aims to monetize AI not only through its own products but also by selling AI models and services, including potential AI agents, but did not specify timelines for significant revenue. Shares fell 9% following the report.