Meta to issue new class of non-voting shares to fund AI spending
Meta announced with its Q3 earnings that it will create non-voting stock for AI investment, acquisitions and employee pay, with trading beginning in 2027, as capital spending guidance rises.
By Javier DíazWed 21 Oct, 23:30 · 2 min read · briefed from 1 sourceIn context
- 01Meta will issue a new class of non-voting shares, announced alongside its third-quarter earnings report on Wednesday; trading begins in 2027.
- 02The shares will fund AI initiatives, potential acquisitions and employee compensation, according to Meta's press release.
- 03Meta now expects 2026 capital expenditures of $135 billion to $145 billion, up from a prior estimate of $130 billion to $145 billion.
- 04CFO Susan Li said the shares will "expand our funding tools and give us flexibility to invest behind the unprecedented momentum we're seeing."
- 05Meta's Muse AI agent, launched in September, hit 10 million US downloads this week despite privacy problems.
What happened
Meta said it will create a new class of non-voting shares to help fund its AI efforts. The company disclosed the plan on Wednesday as part of its third-quarter earnings report. Trading in the new stock is set to begin in 2027.
Beyond AI initiatives, Meta says the shares will go toward potential acquisitions and employee compensation. In its press release, the company said the scale of investment needed to compete and expand infrastructure during the AI shift is significant.
On an earnings call, chief financial officer Susan Li said the new class would expand Meta's funding tools and give it flexibility to invest. The company also raised the low end of its capital expenditure guidance for this year to between $135 billion and $145 billion, from a previous range of $130 billion to $145 billion.
Why it matters
Meta has put billions of dollars into the AI race. It is building large data centers, hiring top talent from companies such as OpenAI, and developing models intended to rival those from other big technology firms. The new share class gives it another way to pay for that work and to compensate employees.
“The scale of investment required to compete, sustain growth, expand infrastructure, and pursue new strategic initiatives amidst the AI transformation taking place in the industry is significant”
The announcement landed during a busy period for the company. Meta launched its Muse AI agent in September. Like other agents, it can clean out an email inbox, book restaurant reservations and plan trips. The Muse app rose to the top of app stores after launch and reached 10 million US downloads this week. Meta also released its Muse Wonder model this week.
Muse has had problems. A tech YouTuber reported that the agent gave his address to a stranger on Facebook Marketplace, adding to privacy concerns. Meta also paused Muse's conversation-sharing feature after researchers found chats publicly available on the web.
What to watch
The main date is 2027, when trading in the new non-voting shares is due to start. The coverage does not say how many shares will be issued or at what price, so those details remain open.
Also worth tracking is whether capital spending guidance keeps rising, and how Meta handles the privacy issues around Muse as the app grows.
Sources
This briefing was written by Claude from the sources above. Check the original reporting before relying on it.