Meta to Issue Non-Voting Shares to Fund $64B AI Expansion

Meta has officially confirmed it will create a new class of non-voting stock to finance its massive expansion into artificial intelligence.

During the earnings call held on Wednesday, October 21, 2026, the company detailed this strategic financial move. The announcement follows reports from Semafor that Meta was considering issuing shares that do not carry voting rights. By creating this new instrument, the company aims to secure the necessary capital for its AI buildout while protecting the current voting structure held by existing shareholders.

Susan Li, Meta’s chief financial officer, explained that the new shares will be distributed to all current stockholders via a stock dividend. Li stated that the primary goal is to generate a publicly traded, non-voting stock that can be utilized for capital raising, employee compensation, and acquisitions. This approach allows the company to maintain its founder-led governance model while expanding its financial toolkit.

The move comes as Meta reports a third quarter that significantly outperformed Wall Street forecasts. The company posted revenue of $64 billion, marking a 26% increase compared to the same period last year. However, this growth came with a substantial cost increase. Expenses rose by 68% year-over-year, reflecting the heavy investment required to support the company’s rapid technological development.

Despite the overall financial strength, the Reality Labs division continues to operate at a loss. This unit, which develops augmented reality glasses, virtual reality headsets, and related software, is expected to narrow its deficits. Meta projects that losses in this sector will shrink from their 2025 levels to a range between $18 billion and $19 billion.

The company has accelerated its AI efforts over the past year, releasing several distinct models. These include Muse Spark and Muse Glimmer, which were launched earlier this year. More recently, Meta introduced Muse Wonder and Muse Spark Open. The latter is an open-weight model, meaning its underlying parameters are publicly available for external developers to utilize and build upon. Additionally, the firm launched Muse Code, a specialized coding agent designed for software developers.

At its annual Meta Connect event, the company also unveiled a new line of avatars for its AI assistant, Meta Muse. These characters are designed to be cute and cuddly, aiming to make the AI services more relatable and shareable for users. This branding strategy appears to be resonating with the market, particularly in North America.

CEO Mark Zuckerberg highlighted the rapid adoption of the Muse personal agents during the earnings call. He noted that just one and a half months after launch, more than 10 million people in the U.S. and Canada had set up these agents. Zuckerberg described the growth as strong, noting that the product has held the number one spot in the App Store for almost every day since its release.

Zuckerberg indicated that the product has achieved clear product-market fit, prompting the company to enter a new operational phase focused on scaling. He expressed confidence that the platform will eventually serve billions of people. However, the company acknowledged that regulatory and legal challenges remain on the horizon.

CFO Li warned that ongoing legal matters could significantly impact financial results. She specifically pointed to increased scrutiny regarding youth-related issues in several markets. Meta has several youth-related trials scheduled in the coming months in the United States, which the company is actively monitoring for potential financial implications.