Meta and Microsoft Face AI Scrutiny Amid Spending and Security Concerns

On July 30, 2026, Meta and Microsoft faced separate but related challenges over their artificial intelligence strategies. Meta defended its use of AI smart glasses after privacy criticism, while also arguing that AI is making app development easier, despite growing skepticism about its AI spending. Meanwhile, Microsoft dealt with security flaws in its Copilot AI that could leak customer secrets, and a separate cloud vulnerability risked mass customer exposure. Goldman Sachs, however, said Microsoft shows Wall Street how AI investments pay off, contrasting with weaker confidence in Meta's approach. Additionally, Meta addressed concerns from the Indian government over a video involving Prime Minister Modi, outlining safeguards.