KEY POINTS Microsoft shares jumped 10% while Meta tumbled 10% even as both companies devoted considerable resources to AI investments. However, free cash flow tumbled 91% year over year to $784 million due to escalating AI infrastructure spending on chips, data centers, and power capacity. Microsoft's ability to cross-sell AI features directly to its vast base of enterprise software and cloud customers gives it a structural advantage in converting AI infrastructure spending into revenue. Meta, on the other hand, lacks a comparable enterprise platform and is struggling to develop AI revenue streams capable of offsetting the massive scale of its AI spending. After years of rewarding tech giants simply for committing billions to AI infrastructure, investors are now demanding AI investments generate measurable returns.