Meta Outlines New Non-Voting Shares to Fund $18B AI Spending

Meta Platforms is preparing to issue a new category of non-voting shares to raise capital for its expanding artificial intelligence infrastructure, a move that would allow the company to secure funding without diluting the voting control of its current investors. The plan, first reported by Semafor, was confirmed by executives during the company’s earnings call on Wednesday. The announcement comes as the company attempts to balance record-breaking revenue growth against surging operational costs.

Chief Financial Officer Susan Li stated the company intends to create a new class of non-voting capital stock which will be distributed to all existing shareholders through a stock dividend. This new tier of shares is designed to be publicly traded and will serve specific corporate functions. Li outlined that the stock is intended for use in capital raising, employee compensation, acquisitions, and other general corporate purposes.

By utilizing non-voting shares for these activities, Meta aims to preserve the voting power of its existing Class A and Class B shareholders. Li noted that this structure supports the company’s current founder-led model while simultaneously expanding its funding tools. The objective, she said, is to provide flexibility to invest behind the unprecedented momentum seen across every part of the business, driven by AI.

The capital raise is intended to offset significant expenditures. Meta reported third-quarter revenue of $64 billion, which represents a 26% increase from the same period a year earlier. However, costs and expenses for the quarter climbed by 68% year-over-year. Additionally, the company’s Reality Labs division, which focuses on augmented reality glasses, virtual reality headsets, and related software, continues to operate at a loss.

While Reality Labs remains a financial drain, Meta expects those losses to decrease from 2025 levels. The earnings report projects that division losses will fall to a range between $18 billion and $19 billion. The company is channeling substantial resources into AI development, having recently released a series of models including Muse Spark, Muse Glimmer, and Muse Wonder, alongside an open-weight model named Muse Spark Open.

The company also recently introduced Muse Code, a coding agent for software developers, and debuted new avatars for the Meta Muse assistant. CEO Mark Zuckerberg highlighted the adoption rate of these tools during the earnings call. He stated 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.

Zuckerberg added that growth remains strong and the service has ranked number one in the App Store almost every day. He characterized the current status of the product as having clear product-market fit. Consequently, the company is entering a new, more operational phase focused on scaling the product, with Zuckerberg claiming the company expects to eventually serve billions of people.

Despite the push for growth, the company continues to face significant hurdles. Li warned that the company monitors active legal and regulatory matters that could significantly impact business and financial results. She specifically cited ongoing scrutiny regarding youth-related issues in several markets, noting that a number of youth-related trials are scheduled to take place in the United States in the coming months.