Meta Launches Non-Voting Shares to Fuel Massive AI Expansion

Meta has confirmed it will create a new class of non-voting stock to help finance its aggressive expansion into artificial intelligence. Announced during the company’s third-quarter earnings call on Wednesday, this financial maneuver is designed to provide the resources necessary for Meta's AI ambitions while preserving the governance structure that has defined the company to date.

The move, first reported by Semafor, involves issuing shares that do not carry voting rights. These new shares are intended to be distributed to all existing shareholders via a stock dividend. Susan Li, Meta’s chief financial officer, explained that the primary goal is to establish a publicly traded, non-voting instrument. This tool will be utilized for capital raising, employee compensation, and acquisitions, all while keeping the voting power firmly in the hands of existing Class A and B shareholders.

Li emphasized that this strategy allows Meta to maintain its founder-led structure. By expanding its funding tools, the company aims to gain the flexibility needed to invest in the significant momentum currently driving its business. This approach enables Meta to allocate resources toward its AI initiatives without the structural changes that might otherwise accompany a traditional secondary stock offering.

The financial backdrop for this decision is strong. Meta reported $64 billion in revenue for the quarter, marking a 26 percent increase from the same period last year. However, the company’s costs and expenses also climbed sharply, rising 68 percent year-over-year. While the Reality Labs division, which handles augmented reality glasses and virtual reality hardware, continues to post losses, the company expects these deficits to narrow. It projects that Reality Labs losses will shrink to between $18 billion and $19 billion, down from 2025 levels.

Over the past year, Meta has accelerated its AI development, releasing several models including Muse Spark, Muse Glimmer, Muse Wonder, and the open-weight Muse Spark Open. The company also introduced Muse Code, a coding agent for developers, and debuted a line of animated avatars for its AI assistant, Meta Muse, at its annual Connect event. These efforts appear to be resonating with users. CEO Mark Zuckerberg noted that more than 10 million people in the U.S. and Canada have set up Muse personal agents in just six weeks, with the product consistently ranking first on the App Store.

Zuckerberg stated that the clear product-market fit for Muse marks the beginning of a new operational phase focused on scaling the service. The company aims to eventually serve billions of users with its AI tools. Despite this growth, Li cautioned that regulatory and legal challenges remain. The company is monitoring active matters that could impact its financial results, including ongoing scrutiny regarding youth-related issues and several trials scheduled in the coming months.

This strategic shift underscores Meta’s commitment to leveraging its financial strength to dominate the AI landscape. By creating a dedicated vehicle for capital raising, the company positions itself to continue investing heavily in technology while maintaining the control structures preferred by its founders and long-term investors.