Meta increased its capital expenditure for the year as AI data center costs rise.
The company said that it planned to spend $130bn to $145bn this year, up from $115bn-$135bn at the start of this year and $125bn-$145bn in April. This week, Amazon also increased capex guidance by $20bn, citing the cost of memory for AI servers.
– Meta/Facebook
While investors were forgiving of Amazon's increased expenditure, with shares jumping, they were less kind to Meta.
Shares fell around ten percent, as Meta's free cash flow for the quarter hit its lowest level in the past five years, at $784m. This time last year, free cash flow was $8.5bn.
