Meta Unveils New Share Class to Fuel AI Expansion

Meta is set to create a new category of stock designed to finance its aggressive push into artificial intelligence without diluting the voting power of its current owners. The company confirmed this move during its earnings briefing on Wednesday, following earlier reports that it was considering non-voting shares. The plan involves distributing a new class of non-voting capital stock to all existing shareholders as a stock dividend, a strategy intended to support the company’s rapidly expanding AI initiatives.

According to Chief Financial Officer Susan Li, the creation of this new share class is intended to generate a publicly traded instrument that can be utilized for capital raising, employee compensation, and acquisitions. Li stated that this approach is designed to preserve the voting influence of existing Class A and B shareholders, thereby maintaining the current founder-led structure of the company. She added that these shares would expand the company's funding tools and provide flexibility to invest behind the unprecedented momentum seen across the business, driven by AI.

Meta’s financial performance in the third quarter was robust, with revenue reaching $64 billion, a 26% increase compared to the previous year. However, costs and expenses rose more sharply, climbing 68% year-over-year. The company’s Reality Labs division, which develops augmented reality glasses, virtual reality headsets, and software, continues to operate at a loss, though the company projects these losses will decrease from 2025 levels to a range of $18 billion to $19 billion.

The company has been rolling out numerous AI products recently, including models like Muse Spark, Muse Glimmer, and Muse Wonder, as well as an open-weight model called Muse Spark Open. Additionally, Meta has introduced a coding agent named Muse Code. During the earnings call, CEO Mark Zuckerberg noted that in just a month and a half, more than 10 million people in the U.S. and Canada have set up Muse personal agents. He stated, “Growth continues to be strong, and we have been number one in the App Store almost every day.”

Looking ahead, the company expects to scale the Muse product further to eventually serve billions of people. Despite the growth in AI, the company remains cautious regarding external pressures. Li noted that the company continues to monitor active legal and regulatory matters that could significantly impact financial results, specifically mentioning scrutiny on youth-related issues in several markets and upcoming trials scheduled for the coming months in the United States.

Meta's decision to introduce non-voting stock reflects a balancing act between raising capital for massive AI infrastructure investments and maintaining strict control over corporate decisions. By separating financial ownership from voting rights, the company aims to secure the funds needed for its technological roadmap while ensuring that decision-making authority remains with its current leadership and shareholders. This structure is intended to provide the financial flexibility required to invest behind the momentum the company sees across its business, driven by AI.