TNB Tech Minute: Meta Reports Record Revenue But Expects to Spend More on AI

Summary

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WSJ Tech News Briefing: "TNB Tech Minute: Meta Reports Record Revenue But Expects to Spend More on AI"

Date: July 29, 2026
Host: Julie Chang

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Episode Overview

This tech news update delivers concise reporting on major corporate earnings from Meta and Microsoft, highlighting the escalating race in AI development and infrastructure investment. It also covers an international legal development involving Telegram’s founder, reflecting ongoing tensions between tech platforms and regulatory authorities.

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Key Discussion Points & Insights

1. Meta’s Record Earnings and AI Spending

• Meta reported record sales of $60.8 billion for Q2 2026.
• Revised its projected year-long capital spending minimum to $130 billion—$5B higher than before.
  • The upper forecast remains unchanged at $145 billion.
• Context: Meta is intensifying investments in infrastructure—especially data centers, AI chips, and talent—to keep pace with rivals in the AI space.

“Meta is racing to catch up to rivals in the AI race and has deployed billions of dollars to buy chips, build data centers and hire top talent to create cutting edge models.”
—Julie Chang (00:46)

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2. Microsoft’s Cloud Surge and AI Momentum

• Microsoft reported revenue of $90B (up 18%) and net income of $35.8B (up 31%) for its latest quarter, both above Wall Street expectations.
• Azure (Microsoft’s cloud platform) passed $100B in revenue for the first time.
  • The number of paid Microsoft 365 Copilot seats has surpassed 30 million.
• Despite these numbers, Microsoft’s shares are down around 18% year-to-date.
  • Investors are focusing on whether heavy spending on data centers will deliver sustained returns.

“Investors have been looking for indicators the tech giant's data center spending will pay off, and Azure remains one of the numbers watched most closely as a read on general AI demand.”
—Julie Chang (01:10)

“CEO Satya Nadella said that Azure revenue topped $100 billion for the first time and Microsoft 365 copilot reached over 30 million paid seats.”
—Julie Chang (01:24)

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3. Telegram’s Founder Faces Charges in Russia

• Russian authorities have officially charged Pavel Durov, the Dubai-based founder of messaging platform Telegram, for allegedly aiding terrorism.
  • The charges stem from Telegram’s refusal to crack down on channels used by Ukraine to plan attacks.
• Russia’s top security agency has moved to add Durov to an international wanted list.
• Durov and Telegram have not responded to comment requests.
  • The official Telegram X account posted a photo of Durov making an obscene gesture in apparent response.

“Russian authorities issued formal charges against Telegram founder Pavel Durov today. They're accusing him of aiding terrorism by failing to crack down on Telegram channels used by Ukraine to plan attacks.”
—Julie Chang (01:39)

“The official Telegram account on X posted a photo this morning of Durav giving the middle finger.”
—Julie Chang (02:00)

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Timestamps for Notable Segments

• 00:16: Julie Chang starts the tech news minute
• 00:20: Meta’s earnings, capital expense plans, AI investment details
• 00:58: Microsoft’s quarterly earnings, Azure/AI progress, stock performance
• 01:39: Legal charges against Telegram’s Pavel Durov
• 02:00: Telegram’s response on social media

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Memorable Quotes

• Meta’s AI investments:
  “Meta is racing to catch up to rivals in the AI race and has deployed billions of dollars to buy chips, build data centers and hire top talent to create cutting edge models.” (Julie Chang, 00:46)

• Microsoft’s AI-Driven Products:
  “CEO Satya Nadella said that Azure revenue topped $100 billion for the first time and Microsoft 365 copilot reached over 30 million paid seats.” (Julie Chang, 01:24)

• Telegram’s Response to Charges:
  “The official Telegram account on X posted a photo this morning of Durav giving the middle finger.” (Julie Chang, 02:00)

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Summary

This episode spotlights intense competition in the AI sector, with Meta and Microsoft both reporting explosive revenue—but at the cost of unprecedented infrastructure spending. Meanwhile, the regulatory saga around Telegram exemplifies the increasing pressures tech leaders face amid geopolitical tensions. The episode is brisk, insightful, and captures the pulse of key tech-industry developments as of late July 2026.

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Transcript

[A]

This episode is sponsored by Anthropic, the makers of Claude K? Ju co founded genspark, an all in one AI workspace. He credits his success to collaborating with trusted partners. Hear from him at the break.

[B]

Here's your afternoon TNB Tech minute for Wednesday, July 29th. I'm Julie Chang for the Wall Street Journal. Starting with earnings, Meta has reported record sales of $60.8 billion for the second quarter, but said it'll be spending more on its infrastructure buildout. The company revised its projected capital spending, saying its minimum for the year would be $130 billion, $5 billion more than previously announced. The top end of its forecast remained unchanged at $145 billion. Meta is racing to catch up to rivals in the AI race and has deployed billions of dollars to buy chips, build data centers and hire top talent to create cutting edge models. Microsoft reported strong cloud growth and a boost in the number of paid AI subscribers for the quarter ended in June. Microsoft reported that revenue rose 18% to $90 billion and net income jumped 31% to $35.8 billion, both beating Wall street expectations. Investors have been looking for indicators the tech giant's data center spending will pay off, and Azure remains one of the numbers watched most closely as a read on general AI demand. CEO Satya Nadella said that Azure revenue topped $100 billion for the first time and Microsoft 365 copilot reached over 30 million paid seats. Still, Microsoft shares are down roughly 18% so far this year, and Russian authorities issued formal charges against Telegram founder Pavel Durov today. They're accusing him of aiding terrorism by failing to crack down on Telegram channels used by Ukraine to plan attacks. In Russia, the country's top security agency has taken meas to place Durav, who lives in Dubai, on an international wanted list. Durav and his company did not immediately respond to requests for comment, but the official Telegram account on X posted a photo this morning of Durav giving the middle finger and that's your TNB Tech minutes. Check back in the morning for another quick tech update.

[A]

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[C]

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[A]

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