Meta Plans to Issue New Stock Class to Fund AI Expansion

Meta shareholders should expect to receive a new type of stock in the near future. The company plans to issue a class of shares that carry no voting rights, a move disclosed in connection with its third-quarter earnings report. This new stock class will be distributed to current shareholders as part of a dividend.

The primary purpose of this financial maneuver is to generate capital. Meta intends to use the funds raised through these non-voting shares to support its extensive investments in artificial intelligence technology. The company is seeking to expand its funding sources to invest further in its business operations.

During the earnings call, Chief Financial Officer Susan Li stated that the company plans to "create a new class of non-voting capital stock, which will be distributed to all existing shareholders through a stock dividend." She further explained that this new class of shares is "created 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 B shareholders."

This structure allows Meta to maintain its "founder-led structure," according to Li. It also provides the company with additional funding tools and flexibility to invest in business momentum. However, the creation of a non-voting class raises questions about how control over major corporate decisions will be managed as the share count increases.

Meta’s financial report for the third quarter of 2026 indicates a significant increase in spending. While revenue grew by 26% year-over-year to $64 billion, costs and expenses surged by 68% over the same period. The company also continues to operate its Reality Labs division at a loss, though it projects these losses to decrease to between $18 billion and $19 billion.

The company is currently developing numerous AI products, including models like Muse Spark and Muse Glimmer, as well as the open-weight model Muse Wonder. Additionally, Meta has launched a coding agent for software developers and a new line of avatars for its AI assistant, Meta Muse, designed to make the service more relatable.

During the earnings call, CEO Mark Zuckerberg reported that "more than 10 million people in the U.S. and Canada have set up Muse personal agents" in the last month and a half. He added that "growth continues to be strong, and we have been number one in the App Store almost every day," claiming that the company expects to eventually "serve billions of people."

Despite this growth, the company faces ongoing regulatory and legal matters. Li stated, "We continue to monitor active legal and regulatory matters that could significantly impact our business and financial results." The company is specifically addressing scrutiny regarding youth-related issues in several markets, with a number of trials scheduled in the coming months in the United States.