Meta Plans New Non-Voting Stock to Fund AI Push
Meta introduces a new class of non-voting stock to fund its massive AI expansion, employee compensation, and corporate acquisitions.
Stock photo for illustration only, not from the actual event
- Meta plans to issue non-voting shares to help finance its AI infrastructure
- Q3 revenue reached $64 billion, marking a 26% year-over-year increase
- Reality Labs losses are narrowing, projected between $18B and $19B for the year
- The company continues launching AI models, including Muse Spark Open and Muse Code
Meta is making a major push into artificial intelligence and is considering issuing a new type of stock to help finance the expansion. Reports indicate the company might introduce non-voting shares, which do not grant owners a vote on corporate decisions, to secure additional capital for its technology initiatives.
This financial strategy emerged as the company released its third-quarter earnings report, highlighting the growing capital requirements needed to support its expanding artificial intelligence infrastructure.
Stock photo for illustration only, not from the actual event
A company representative explained that this new class of shares was created for the purpose of publicly raised capital, employee compensation, acquisitions, and general corporate purposes, all while preserving the voting power of existing Class A and Class B shareholders.
Meta delivered strong financial results for the past quarter, surpassing Wall Street expectations with $64 billion in revenue, representing a 26% jump compared to the previous year. However, total costs and expenses also climbed significantly, rising 68% year over year due to heavy infrastructure investments.
"Created this new class of shares with the purpose of creating a publicly traded non-voting stock usable for capital raising, employee compensation, acquisitions, and other general corporate purposes while preserving the voting power of existing Class A and Class B shareholders."
Meta Representative
Meanwhile, Reality Labs, the division dedicated to augmented reality glasses and virtual reality hardware and software, continues to operate at a loss, though the figures are improving. The company reported that it expects the division's losses to shrink from 2025 levels down to between $18 billion and $19 billion.
Issuing non-voting stock is a strategic financial mechanism often utilized by major technology firms to secure substantial capital without diluting the voting control of founders and principal shareholders. This approach is becoming increasingly vital as companies pour unprecedented amounts of money into data centers and specialized hardware required for advanced AI training.
Over the past year, Meta has significantly ramped up its AI portfolio by launching several models, including Muse Spark and Muse Glimmer, alongside Muse Spark Open, an open-weight model with publicly available parameters. The company also introduced Muse Code, a coding agent designed for software developers, alongside new interactive avatars for its Meta Muse AI assistant.
Source: TechCrunch
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