Meta's AI Sustainability Under Siege: Debt, FCF Collapse, and $1.4T Trial Risk

EY flagged Meta's Beignet structure as a critical audit matter, revealing $420B in off-balance-sheet AI debt—nearly triple reported debt. Q2 free cash flow collapsed to $784M from $8.55B. Now Meta faces a $1.4 trillion trial over children's data; states demand deletion of AI models trained on that data, directly threatening Zuckerberg's $145B AI buildout. Insider selling pattern (all sales, zero purchases) adds concern. The $3T hidden debt across big tech (WSJ) includes Meta's $27B via Blue Owl structure. Roger McNamee's critique adds weight. Investors must monitor trial outcome, debt disclosure, and FCF trajectory.