Meta Creates Non-Voting Stock To Fund Its Massive AI Spending

Meta is changing how it pays for its rapid expansion into artificial intelligence. The company is creating a new type of stock that will not carry voting rights. This move allows the firm to raise significant capital while keeping decision-making power with its current major shareholders.

The announcement came during the company’s third-quarter earnings call on Wednesday. Chief Financial Officer Susan Li confirmed the details of the new financial instrument. She stated that the firm plans to create a new class of non-voting capital stock. This stock will be distributed to all existing shareholders through a stock dividend.

Li explained that the goal is to create a publicly traded non-voting stock. This new tool will be used for capital raising, employee compensation, and acquisitions. It will also serve other general corporate purposes. Crucially, this structure preserves the voting power of existing Class A and B shareholders. Li noted that this approach maintains the company’s founder-led structure. It also provides flexibility to invest in the strong momentum seen across the business due to AI.

Meta reported strong financial results for the recent quarter. The company beat Wall Street expectations. Revenue reached $64 billion, marking a 26% increase from the same period a year ago. However, costs and expenses rose sharply. They increased by 68% year-over-year, reflecting the heavy investment in new technology and infrastructure.

The Reality Labs division continues to operate at a loss. This unit handles augmented reality glasses, virtual reality headsets, and related software. While the losses are shrinking compared to previous years, they remain substantial. The company expects the division’s losses to narrow to between $18 billion and $19 billion, down from 2025 levels.

Meta has made significant strides in AI over the past year. The company released several new models, including Muse Spark and Muse Glimmer earlier this year. In recent weeks, it added Muse Wonder and Muse Spark Open. The latter is an open-weight model that allows outsiders to access and build upon its underlying parameters. Meta also launched Muse Code, a coding agent designed for software developers.

At its Meta Connect event this year, the company unveiled new avatars for its AI assistant, Meta Muse. These are described as cute and cuddly. The goal is to make the AI services more relatable and meme-able. The market response has been positive. CEO Mark Zuckerberg noted that more than 10 million people in the U.S. and Canada have set up Muse personal agents in just a month and a half.

Zuckerberg stated that growth remains strong. He claimed the product has been number one in the App Store almost every day. With clear product-market fit, the company is entering a more operational phase focused on scaling. Zuckerberg said the firm expects the product to eventually serve billions of people.

Despite the growth, Meta faces ongoing regulatory and legal challenges. Li noted that the company continues to monitor active matters that could impact its business and financial results. She highlighted scrutiny on youth-related issues in several markets. Several youth-related trials are scheduled in the United States in the coming months.