The Instagram owner is splurging billions to build compute - chips, servers, energy and data centers that ‌power AI - leaving it with free cash flow of just $784 million in the second quarter to run and grow its business. Renting out compute could ease Meta's cash-flow squeeze, but would also divert scarce resources from its own push to build AI models and services. Microsoft on Wednesday showed how its AI bets ⁠were paying off even as its free cash flow fell 23%. But beyond broad references to subscriptions and enterprise services, he offered few specifics on ​how those businesses would justify Meta's massive AI spending. Responding to a question from ‌J.P.Morgan analyst Doug Anmuth, who noted that Meta was also purchasing capacity from third parties while selling compute, Zuckerberg said Meta was intentionally investing ahead of demand.