Meta Issues Non-Voting Shares To Fund AI Spending

Meta Platforms is introducing a new category of equity to finance its expanding artificial intelligence initiatives. On Wednesday, the company confirmed plans to issue non-voting stock to existing shareholders. This move is designed to generate capital for AI development without altering the current voting structure of the firm. Chief Financial Officer Susan Li stated that the new class of capital stock will be distributed via a stock dividend to all current holders. The strategy allows Meta to raise funds for employee compensation, acquisitions, and other corporate needs while keeping voting power with existing Class A and B shareholders.

The decision follows a strong third-quarter earnings report where the company exceeded Wall Street forecasts. Meta generated $64 billion in revenue, marking a 26% increase from the same period last year. However, costs and expenses climbed significantly, rising 68% year over year. This financial performance provides the backdrop for the new equity issuance. Li explained that the new shares expand the company's funding tools. She noted that this flexibility supports the investment momentum driven by AI across the business.

Meta has aggressively expanded its AI portfolio over the past year. The company released several models, including Muse Spark and Muse Glimmer earlier in 2026. Recently, it launched Muse Wonder and Muse Spark Open, the latter of which offers open-weight parameters for external developers. The firm also introduced Muse Code, a coding agent for software engineers. At its annual Meta Connect event, Meta unveiled a line of avatars for its AI assistant, Muse, aiming to make the technology more relatable and shareable.

CEO Mark Zuckerberg reported strong user adoption for these new AI products. He noted that over 10 million people in the U.S. and Canada set up Muse personal agents within a month and a half. Zuckerberg claimed the product maintained the number one spot in the App Store nearly every day. He described this as evidence of clear product-market fit. The company is now entering an operational phase focused on scaling the service to eventually serve billions of users.

The Reality Labs division continues to operate at a loss, though the gap is narrowing. Meta expects the division's losses to shrink from 2025 levels to a range between $18 billion and $19 billion. This unit handles augmented reality glasses, virtual reality headsets, and related software. The financial burden of these hardware projects underscores the need for diversified funding sources like the new non-voting stock.

Li also highlighted ongoing regulatory and legal challenges that could affect future financial results. The company is monitoring active matters that might significantly impact its business. Specific scrutiny is being applied to youth-related issues in several markets. Meta has several youth-related trials scheduled in the coming months in the United States. These legal proceedings represent a persistent risk for the company as it scales its AI operations.

The new stock class is expected to provide Meta with greater financial flexibility in a competitive landscape. By decoupling capital raising from voting rights, the company can attract investment without diluting founder control. This approach mirrors strategies used by other tech giants but is tailored to Meta's specific need to fund its AI infrastructure. The move signals a long-term commitment to maintaining its technological edge through strategic capital allocation.