Meta to Launch Non-Voting Shares to Fuel AI Expansion
AI-generated image · US National Wire
The company is introducing a new class of stock to fund massive capital expenditures and acquisitions without granting new voting rights.
Meta is introducing a new class of non-voting shares to finance its aggressive push into artificial intelligence, according to reporting from The Verge. The company revealed the plan as part of its third-quarter earnings report, noting that the new stock will provide the capital necessary to sustain growth, expand infrastructure, and pursue strategic initiatives during the industry's AI transformation.
Chief Financial Officer Susan Li stated during an earnings call that this move will provide the company with greater flexibility and expanded funding tools to capitalize on AI-driven momentum across its business. Beyond AI infrastructure, Meta indicated the funds will be used for employee compensation and potential acquisitions. Trading for the new shares is expected to begin in 2027.
The shift comes as Meta scales its AI investments, which include the development of large-scale data centers and the recruitment of talent from competitors such as OpenAI. The financial stakes are significant; Meta has increased its capital expenditure estimate for the current year to a range between $135 billion and $145 billion, up from a previous estimate of $130 billion to $145 billion.