New Stock Class to Bankroll AI Expansion

Meta is turning to a new financial instrument to generate capital for its extensive artificial intelligence operations. Alongside its third-quarter earnings report on Wednesday, the company announced plans to create a distinct category of shares to secure funding for its technology infrastructure.

Chief Financial Officer Susan Li confirmed reports regarding the issuance of non-voting stock during the earnings call. 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.” Li further explained that this new share type is designed to be publicly traded for uses including capital raising, employee compensation, and acquisitions. This approach allows the organization to maintain its current “founder-led structure” by preserving voting power for existing Class A and B shareholders. The move expands the company’s funding tools and provides flexibility to invest behind momentum across the business, driven by AI, Li added.

The financial backing comes as the company reported revenue of $64 billion, a 26% increase from the previous year, surpassing Wall Street expectations. However, operating costs and expenses climbed by 68% year-over-year. Additionally, the Reality Labs division, which develops AR glasses and VR headsets, is projected to report losses ranging between $18 billion and $19 billion, reducing from 2025 levels.

This financial activity follows a period of heavy product development in the AI sector. Releases this year have included models named Muse Spark and Muse Glimmer, along with Muse Wonder and Muse Spark Open, an open-weight model with publicly available parameters. The company also launched a coding agent called Muse Code and introduced a new line of avatars for the AI assistant Meta Muse to increase engagement. CEO Mark Zuckerberg reported that in just a month and a half, over 10 million people in the U.S. and Canada have set up Muse personal agents. “Growth continues to be strong, and we have been number one in the App Store almost every day,” Zuckerberg said. He added that now that Muse has clear product-market fit, the company is entering a new phase focused on scaling it.

Despite these developments, the company continues to face regulatory hurdles. Li noted that active legal and regulatory matters could significantly impact business and financial results. The company is monitoring scrutiny regarding youth-related issues in several markets and has youth-related trials scheduled in the United States in the coming months.