Meta Platforms might not be the first Big Tech company to rein in AI spending, but the argument that it should is growing stronger. Meta is the most financially stretched of the biggest tech companies, with its ability to generate AI returns hinging almost solely on ad sales and no record of building successful new businesses beyond social media.

Meta anticipates capital expenditures of around $137.5 billion this year, putting it into negative free cash flow territory in the latter half for the first time since its 2012 IPO. Projections via FactSet suggest it will burn through more than $20 billion in cash next year.

Investor patience is being tested as tech giants escalate AI ambitions amid rising costs for computer memory and AI infrastructure. Meta's stock fell 10% in after-hours trading after raising its 2026 capital-spending range and missing second-quarter profit expectations.

Meta isn't alone—Amazon.com and Alphabet are also bleeding money for AI. Google parent Alphabet's stock fell nearly 7% after a $10 billion capital spending hike.