Analysis:Meta's AI splurge lays bare its compute conundrum

July 30 : Meta can simultaneously fuel its own AI ambitions and rent out its scarce computing capacity to bolster returns, CEO Mark Zuckerberg signaled on Wednesday. The problem is: investors aren't buying it.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. That collapse, of 91 per cent from a year ago, drove its stock down 9 per cent premarket on Thursday.Pressed by analysts for details on Meta's plans, Zuckerberg framed compute as a scarce strategic asset that the company should keep and build around, rather than simply sell for short-term profit.But he acknowledged that the company had received a number of offers for