Meta Issues New Non-Voting Shares to Fund Massive AI Spending

Meta has announced a new financial tool to support its expanding artificial intelligence operations. The company plans to issue a specific type of stock that does not carry voting rights. This move allows Meta to raise money and compensate employees without diluting the control held by its existing leadership.

During a conference call on Wednesday, the company confirmed the plan alongside its third-quarter earnings report. Susan Li, the chief financial officer, explained that the new shares will be given to all current shareholders as a stock dividend. She stated that this new class of capital stock is designed for capital raising, employee compensation, and acquisitions. The goal is to preserve the voting power of the current Class A and Class B shareholders.

This structure helps maintain what Li described as the founder-led structure of the company. It also provides the flexibility needed to invest in the rapid growth driven by AI. Li noted that the company sees unprecedented momentum across its business. The new shares will act as a versatile funding tool for these ongoing initiatives.

Meta reported strong financial results for the past quarter. Revenue reached $64 billion, marking a 26 percent increase from the same period last year. These figures beat expectations set by Wall Street analysts. However, the company also saw a significant rise in costs. Expenses increased by 68 percent compared to the previous year, reflecting the heavy investment in new technologies and infrastructure.

The Reality Labs division continues to operate at a loss, though the deficit is narrowing. This division handles augmented reality glasses, virtual reality headsets, and related software. Meta expects the losses for this unit to shrink from 2025 levels. The projected loss for the upcoming period is between $18 billion and $19 billion. The company remains committed to long-term growth in this sector despite the ongoing expenses.

Meta has accelerated its AI efforts over the last year. The company released several models, including Muse Spark and Muse Glimmer earlier in 2026. Recently, it added Muse Wonder and Muse Spark Open. The latter is an open-weight model that allows outsiders to access its underlying parameters. Meta also launched Muse Code, a coding agent for software developers. At its Meta Connect event, the company unveiled new avatars for its AI assistant, Meta Muse, aiming to make the service more relatable.

Adoption of these AI products has been rapid. CEO Mark Zuckerberg reported that over 10 million people in the U.S. and Canada have set up Muse personal agents in just six weeks. He noted that the product has been number one in the App Store nearly every day. Zuckerberg said the company is now entering a phase focused on scaling the product. He expects the service to eventually serve billions of people.

Despite the strong performance, the company faces ongoing challenges. Li mentioned that Meta is monitoring active legal and regulatory matters. These issues could impact the business and financial results. Specifically, the company is seeing scrutiny regarding youth-related issues in several markets. Several trials concerning these matters are scheduled in the United States in the coming months.

The introduction of non-voting stock is a strategic shift for Meta. It provides a clear path to fund its ambitious AI roadmap. By separating voting rights from ownership in this new class, the company can attract investment and retain talent. This move underscores the scale of Meta's commitment to leading the next generation of technology.