Meta & Microsoft Are Building the AI Future—And Wall Street Is Loving It

💸 Meta & Microsoft are spending billions on AI infrastructure

🚀 Earnings blew past expectations, sending shares soaring

🔧 Chipmakers like AMD & Broadcom are positioned to benefit

🧠 Meta launches a new “Superintelligence Lab”

📊 AI could boost global GDP by $7 trillion over the next decade

⚙️ A new productivity boom could mirror the Roaring '20s

Who: Meta (formerly Facebook) & Microsoft

What: Record-breaking earnings + aggressive investments in AI infrastructure

When: Earnings reported Thursday, Q2 2025

Where: Global operations, centered in the U.S. tech sector

Why: To capitalize on the AI revolution and fuel the next decade of growth

Imagine dropping $72 billion and still having people cheer for you.

That's exactly what Meta is doing with its 2025 capital expenditures—and Microsoft is right behind them with $30 billion in Q1 spend.

The AI race isn't coming.

It's here.

And two tech titans just bought front-row seats. 🎟️

Earnings day was a party:

• 🟢 Meta stock soared 11%

• 🟣 Microsoft jumped 4%

Why? Because both crushed Wall Street’s expectations:

✅ Microsoft:

• Revenue: $76.44B (+18% YoY)

• Net income: $27.23B (up from $22.04B)

✅ Meta:

• Revenue: $47.52B (+22% YoY)

• Net income: $18.34B (+36% YoY)

💥 That’s what happens when your AI investments start to actually work.

Meta and Microsoft aren’t just throwing money around—they're building the backbone of the AI-first world.

💾 Meta’s moves:

• Raised its full-year capex to $66B–$72B

• Launched Meta Superintelligence Labs

• Poured $14.3B into Scale AI (data labeling firm)

• On an AI hiring spree

🖥️ Microsoft’s strategy:

• Invested over $30B in Q1 on data centers & AI infra

• Quietly continues to scale its OpenAI partnership

• Remains a foundational player in enterprise AI adoption

Follow the chips, follow the money.

Analysts say companies like AMD and Broadcom are set to ride the AI wave:

• Meta = 2% of Broadcom’s sales

• Microsoft = 8% of AMD’s sales

💡 Translation: The AI gold rush is lifting more than just the tech giants.

Mark Zuckerberg’s going full Tony Stark.

His bold bets include:

• Launching a Superintelligence Lab

• Hiring top-tier AI researchers

• Making multi-billion dollar deals on future-facing startups

Some analysts love it. Others are nervously sipping coffee watching billions disappear into moonshots. ☕🫣

Zuck’s betting big that AI won’t just enhance Facebook—it’ll replace it as the centerpiece of Meta’s future.

Satya Nadella’s strategy?

Let OpenAI grab the headlines, while Microsoft builds the plumbing for the AI era. 🪠

💼 Investors are noticing:

That’s Wall Street code for: Buy more Microsoft, and don’t look back.

A year ago, everyone thought tech spending was dead.

Then ChatGPT dropped.

The S&P 500 jumped $5 trillion in value since.

This isn't hype—it’s history in the making.

• Double U.S. productivity growth

• Add $7 trillion to global GDP

• Expand S&P 500 profit margins by 4 percentage points

That’s not evolution—that’s a tectonic shift in the economy.

Some are calling this era a modern “Roaring 1920s”—only this time, the fuel isn’t jazz and gin.

It’s code, compute, and ChatGPT.

UBS’s chief investment officer says we could see:

• 🔼 Sustained GDP above 2%

• 📉 Falling inflation

• 👷‍♀️ Strong employment gains

• 📈 Rapid productivity growth

The AI age isn’t on the horizon.

It’s already here—and it's scaling fast. 🧗‍♂️

Want to thrive in the AI-driven decade?

Here’s your actionable playbook from this week’s edition:

✅ 1. Follow the Infrastructure

• Watch companies spending heavily on AI infrastructure (like Meta, Microsoft, Amazon).

• These investments hint at long-term plays, not short-term trends.

✅ 2. Track the Chipmakers

• Nvidia, AMD, and Broadcom stand to gain as AI demand surges.

• Consider them as second-order beneficiaries in your portfolio or strategic planning.

✅ 3. Embrace Generative AI Early

• Tools like ChatGPT, Claude, or Gemini aren’t novelties—they're the new productivity engines.

• If your business or workflow isn’t using AI yet, you're falling behind.

✅ 4. Bet on the Builders

• Companies creating developer tools, data infrastructure, or foundational models will dominate.

• Explore emerging startups in the AI tooling and enterprise solutions space.

✅ 5. Upskill for the AI Age

• AI literacy will soon be as important as digital literacy.

• Start learning: prompt engineering, data labeling, AI strategy, or even ethical frameworks.

🌍 How TAWAI Is Thinking Ahead — And Taking Action

At Think Ahead With AI (TAWAI), we don’t just observe the future—we build pathways into it. As AI reshapes every sector, we believe the next generation of leaders must be more than consumers of technology—they must be its architects. That’s why we’ve launched the Young Global Leaders Lab, a bold new initiative designed to equip emerging changemakers with the mindset, skills, and strategic fluency to lead in an AI-powered world.

This isn’t just another leadership program. It’s a launchpad—a space where tomorrow’s global decision-makers learn to think critically, build responsibly, and innovate ethically with AI at the core. From real-world problem solving to mentorship from industry pioneers, we’re investing in next-gen leadership for a next-gen economy.

🔧 1. Meta Llama 3 (Large Language Model)

• By: Meta

• What it does: A powerful open-source language model developed to compete with GPT-4.

• Why it matters: It's core to Meta’s vision of open AI development and powers their AI chat assistants across platforms like Instagram and WhatsApp.

• Use case: Embedding advanced natural language understanding into apps and consumer tools.

☁️ 2. Microsoft Azure OpenAI Service

• By: Microsoft (in partnership with OpenAI)

• What it does: Brings GPT-4, DALL·E, Codex, and other AI models directly into enterprise apps via Microsoft Azure.

• Why it matters: It’s driving massive cloud adoption, and it's one of the biggest levers in Microsoft's AI monetization strategy.

• Use case: Powering AI copilots in Word, Excel, Teams, and custom enterprise apps.

🤖 3. Meta AI Studio

• By: Meta

• What it does: A platform for developers to build AI characters, assistants, and bots for messaging apps.

• Why it matters: It's part of Meta’s push to make personalized AI ubiquitous in social interactions.

• Use case: Creating branded AI personas or customer service agents in Messenger and WhatsApp.

📊 4. Microsoft Copilot for Microsoft 365

• By: Microsoft

• What it does: Embeds AI into productivity apps like Word, Excel, PowerPoint, Outlook, and Teams.

• Why it matters: It’s redefining workplace productivity by automating document creation, data analysis, and email summaries.

• Use case: Professionals can save hours weekly by delegating routine tasks to AI.

🧠 5. Meta’s Audiocraft

• By: Meta

• What it does: A generative AI tool for creating music and sound effects from text prompts.

• Why it matters: Part of Meta’s AI creativity push, blending entertainment and generative tech.

• Use case: Used by creators and developers for rapid prototyping of audio content

1. Bringing the best of AI to college students for free

2. Google announces 1 billion dollar for AI training plan at US universities

3. Google Challenges ChatGPT Study Mode with Guided Learning in Gemini

4. Meet Jules, Google’s AI coding agent that could change software development workflows

5. MakeMyTrip Launches Myra, Multilingual AI Agent for Travel Bookings

Join Our Elite Community For Comprehensive AI Mastery

🚀 Welcome to TAWAI ‘Generative AI In A Box’ Membership! 🌐🤖

Embark on an exhilarating journey into the transformative world of Artificial Intelligence (AI) with our cutting-edge membership. Experience the power of AI as it revolutionizes industries, enhances efficiency, and drives innovation.

Our membership offers structured learning through the Generative AI Program and immerses you in a community that keeps you updated on the latest AI trends. With access to curated resources, case studies, and real-world applications, TAWAI empowers you to master AI and become a pioneer in this technological revolution.

Embrace the future of AI with the TAWAI ‘Generative AI In A Box’ Membership and be at the forefront of innovation. 🌟🤖

Sanjukta Chakrabortty
Gen. AI Explorer