Meta Platforms invested $30 billion in capital expenditures in the second quarter to pursue a leading position in artificial intelligence (AI), causing its free cash flow to plummet 91% year-over-year to $784 million. Analysis suggests that this spending pace might exceed the company's ability to maintain a cash surplus, and if it continues, self-financing its AI initiatives will be challenging, potentially requiring the issuance of more debt to cover funding gaps. Although Meta's highly profitable advertising business remains strong, investors should focus on whether AI investments can translate into higher profit margins and a recovery in free cash flow.