Meta’s AI Costs Erode Profits as Earnings Dip

Meta's rising AI expenses have led to a significant drop in profits, with free cash flow nearly wiped out this quarter.

Meta’s Q2 profits fell 14% to $15.85 billion, with earnings per share dropping to $6.18.
Total costs surged 55% to $42.03 billion, driven by a 67% increase in R&D spending.
Free cash flow plummeted to $784 million, nearly consumed by capital expenditures of $31.08 billion.