# Meta profits fall 14% as AI spending hits Rs 11.8 lakh crore 2026-08-07T17:46:05+00:00 | World & Diplomacy | Indian Opinion Desk Corroboration: 1 independent outlet Meta reported a 14% drop in net income to $15.8 billion for the June quarter, missing Wall Street expectations, as it spent heavily on AI infrastructure along with $2.4 billion in legal charges and $1.2 billion in severance costs from May layoffs. Revenue rose 28% to $60.8 billion, beating estimates, driven by advertising. Shares fell 12% in after-hours trading. CEO Mark Zuckerberg reaffirmed capital expenditure of $130-145 billion in 2026, nearly double last year's spending, to fund data centres and chips for AI. He announced plans to launch a cloud computing business renting out Meta's computing power. The Reality Labs VR unit posted an operating loss of $4.6 billion. Free cash flow plunged to $784 million from $8.5 billion a year earlier. ## Coverage - thehindu.com - timesofindia.indiatimes.com Tags: advertising, AI spending, cloud computing, earnings, Meta, Reality Labs Canonical: https://indianopinion.org/meta-profit-falls-14-shares-drop-12-on-ai-spending/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/meta-profit-falls-14-shares-drop-12-on-ai-spending/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.