Meta to Issue Non-Voting Shares to Fund $64B AI Push

Meta has confirmed it will create a new class of non-voting stock to help pay for its expanding artificial intelligence operations. The announcement came on Wednesday during the company’s third-quarter earnings call. Chief Financial Officer Susan Li stated the new shares will be distributed to existing shareholders as a stock dividend. This move allows Meta to raise capital while keeping voting power in the hands of current Class A and B holders.

The new shares are designed to be used for raising capital, compensating employees, and funding acquisitions. Li explained that this structure preserves the company’s founder-led governance. It also provides financial flexibility to invest in the rapid growth driven by AI. The company aims to use these tools to support its current momentum across all business units.

Meta reported strong financial results for the third quarter, surpassing Wall Street expectations. Revenue reached $64 billion, a 26% increase from the same period last year. However, costs and expenses rose significantly, jumping 68% year-over-year. This spending surge aligns with the company’s aggressive push into new technology sectors.

The Reality Labs division, which handles AR glasses, VR headsets, and related software, continues to operate at a loss. Nevertheless, the losses are shrinking compared to previous years. Meta expects the division’s deficits to narrow to between $18 billion and $19 billion, down from 2025 levels. This indicates a gradual path toward improved efficiency in its hardware and immersive tech efforts.

Over the past year, Meta has released several new AI models to drive growth. Earlier this year, the company launched Muse Spark and Muse Glimmer. In recent weeks, it introduced Muse Wonder and Muse Spark Open. The latter is an open-weight model, allowing outside developers to access and build upon its underlying parameters. Meta also released Muse Code, a specialized tool for software developers.

At its annual Meta Connect event, the company unveiled a new line of cute avatars for its AI assistant, Meta Muse. These characters are designed to make the AI more relatable and shareable on social media. The strategy focuses on integrating AI more deeply into consumer experiences through familiar and engaging visuals.

The AI products appear to be gaining significant traction. CEO Mark Zuckerberg noted that more than 10 million people in the U.S. and Canada have set up Muse personal agents in just six weeks. He stated that the product has been the number one app in the App Store almost every day. Zuckerberg believes the service now has clear product-market fit and is ready for a scaling phase.

Zuckerberg said the company expects to grow the product to eventually serve billions of people. This ambitious goal underscores the importance of the new funding mechanism. Meanwhile, CFO Susan Li warned that regulatory and legal issues remain on the horizon. The company is monitoring active matters that could impact its financial results.

Li specifically mentioned ongoing scrutiny regarding youth-related issues in several markets. Several trials related to these concerns are scheduled for the coming months in the United States. Meta continues to track these developments as it balances rapid AI investment with legal compliance.