Meta creates non-voting shares to fund AI investment

Summarised from 3 outlets · Updated 21 Oct, 22:44 · Archive

Meta is issuing a new class of non-voting shares to fund its artificial intelligence initiatives, with trading to begin in 2027. The new shares will also support acquisitions and employee compensation. The change enables Meta to raise capital without reducing Mark Zuckerberg's control of the company.

Meta says the investment is necessary to compete as the industry undergoes AI transformation. Susan Li, Meta's chief financial officer, said the new share class will 'expand our funding tools and give us flexibility to invest behind the unprecedented momentum we're seeing across every part of our business driven by AI'. The company expects capital expenditures between $135 billion and $145 billion this year, up from its previous estimate of $130 billion to $145 billion.

Meta has been investing heavily in artificial intelligence, building data centres and recruiting top talent. The company recently launched Muse, an AI agent that can manage email, book reservations and plan trips. Muse reached 10 million downloads in the United States this week, though the company has paused a conversation-sharing feature after researchers discovered chats were publicly available on the web.

How it is being reported

• Meta wants to pay for its broad AI buildout with a newly created class of stockThe social media giant is planning a new stock strategy to help power its broad investments in AI models and services.TechCrunch · 21 Oct, 23:45
• Meta to create a new class of shares to fund AI pushMeta says it's issuing a new class of shares to fund its AI initiatives. As part of its third-quarter earnings report released on Wednesday, the company says the non-voting stock will also go toward potential acquisitions and employee compensation, with trading beginning in 2027. "The scale of investment required to compete, sustain growth, expand infrastructure, […]The Verge · 21 Oct, 22:30
• Meta to create new non-voting share classChange would enable the social media group to sell shares to fund AI investment without reducing Mark Zuckerberg’s controlFinancial Times · 21 Oct, 21:07

In this story: Meta · Mark Zuckerberg · Susan Li

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