Meta Launches New Non-Voting Shares to Bankroll AI Expansion

Meta Platforms is introducing a new financial instrument designed to fund its aggressive artificial intelligence expansion without altering the voting dynamics for its current investors. As the company reported its third-quarter earnings on Wednesday, it confirmed plans to issue a specific class of non-voting capital stock. This move allows Meta to access new funding streams for AI development, employee compensation, and acquisitions while ensuring that existing holders of Class A and B shares retain their proportional influence over corporate decisions.

For ordinary shareholders, the immediate implication is that their voting power will remain intact despite the issuance of new equity. Meta’s Chief Financial Officer, Susan Li, explained that the new shares will be distributed to all existing shareholders through a stock dividend. This structure is intended to preserve the company’s founder-led governance model while expanding its toolkit for raising capital.

Li stated that the creation of this new class of shares is specifically aimed at facilitating capital raising and general corporate purposes. By decoupling ownership from voting rights for this new tranche of stock, Meta aims to maintain flexibility in how it invests in its rapidly growing AI sector. The company emphasized that this mechanism is designed to support the "unprecedented momentum" observed across its various business units, which are increasingly driven by artificial intelligence capabilities.

Financial results for the third quarter demonstrated strong top-line growth, with revenue reaching $64 billion, a 26% increase from the same period in the previous year. However, this revenue growth came alongside a significant surge in costs and expenses, which rose by 68% year-over-year. This sharp increase in spending reflects the heavy investment Meta is making in its technology infrastructure and AI initiatives.

The Reality Labs division, which handles Meta’s augmented reality glasses, virtual reality headsets, and related software, continues to operate at a loss, although the deficit is narrowing. The company projects that losses in this division will shrink from 2025 levels to a range between $18 billion and $19 billion. This reduction indicates a gradual improvement in the efficiency and profitability of Meta’s extended reality hardware and software efforts.

Meta has intensified its focus on AI over the past year, releasing several new models including Muse Spark and Muse Glimmer earlier in 2026. More recently, the company introduced Muse Wonder and Muse Spark Open, the latter being an open-weight model with publicly available parameters that allow external developers to build upon its foundation. Additionally, Meta launched Muse Code, a coding agent designed to assist software developers in their daily workflows.

At its Meta Connect event, the company unveiled a new line of avatars for its AI assistant, Meta Muse, aiming to make the service more relatable and engaging for users. CEO Mark Zuckerberg highlighted the product's rapid adoption, noting that more than 10 million people in the United States and Canada have set up Muse personal agents in just a month and a half. He added that the product has maintained the number one spot in the App Store for almost every day since its launch.

Zuckerberg described the current state of Muse as having achieved clear product-market fit, marking a transition into a more operational phase focused on scaling the service. The company aims to grow the product’s appeal to eventually serve billions of users. This scaling effort is a primary driver for the need for the new funding mechanisms provided by the non-voting stock.

Despite the strong performance and strategic moves, Meta acknowledged ongoing regulatory and legal challenges. Susan Li noted that the company continues to monitor active matters that could impact its business and financial results. Specifically, she pointed to increased scrutiny regarding youth-related issues in several markets, with several related trials scheduled to take place in the United States in the coming months.