Meta reports free cash flow of $784M in Q2, down 91% YoY, and now expects 2026 capex to be $130B-$145B, compared with its prior forecast of $125B-$145B (Reuters)

Meta's 91% year-over-year decline in free cash flow to $784M and upward revision of 2026 capex guidance to $130B-$145B signals an aggressive infrastructure investment cycle driven by AI development, which will likely intensify competition for skilled talent, cloud resources, and semiconductor supply across the tech industry. This massive capital allocation shift demonstrates that major cloud platforms are prioritizing long-term AI capabilities over near-term profitability, creating pressure for other enterprises to accelerate their own AI infrastructure investments to remain competitive. IT leaders should expect continued market tightness for GPU availability, cloud services, and AI expertise as Big Tech companies compete for resources to support their generative AI initiatives.