Artificial Intelligence

Meta Plans New Non-Voting Stock to Fund Broad AI Buildout

During its third-quarter earnings call, Meta confirmed plans to introduce a new class of non-voting capital stock to help finance its expanding artificial intelligence investments while preserving its founder-led structure.

Radwan AbdulhadiEditor and technology writer

Published: October 22, 2026 · Updated: October 22, 2026 · 3 min read

Meta Plans New Non-Voting Stock to Fund Broad AI Buildout — Image: TechCrunch

Creating a New Class of Non-Voting Stock

Meta is making a substantial push into artificial intelligence, and to help pay for it, the company is introducing a new financial strategy. As <a href="https://www.semafor.com/article/10/21/2026/meta-plans-nonvoting-shares-eyeing-more-stock-sales-to-fund-its-ai-dreams">reported</a> during the company's third-quarter earnings release, the tech giant plans to issue non-voting shares to support its ongoing AI ambitions.

During <a href="https://techcrunch.com/tag/meta/">Meta</a>'s earnings call, Chief Financial Officer Susan Li officially confirmed the plans. She explained that the company intends to create a new class of non-voting capital stock that will be distributed to all current shareholders through a stock dividend.

According to Li, the newly created shares will serve multiple purposes, including capital raising, employee compensation, corporate acquisitions, and general corporate activities. Importantly, the structure preserves the voting power of existing Class A and B shareholders.

Preserving the Founder-Led Structure

The introduction of the non-voting stock is designed to protect the company's established management framework. Li noted that the shares will allow <a href="https://techcrunch.com/tag/mark-zuckerberg/">Mark Zuckerberg</a> and current stakeholders to maintain the existing founder-led structure.

Furthermore, the initiative expands the company's financial toolkit. It provides operational flexibility to invest heavily behind the unprecedented momentum occurring across every part of the business, which is primarily driven by <a href="https://techcrunch.com/tag/ai/">AI</a>.

Strong Quarterly Financial Results

The stock strategy announcement accompanied a robust financial report that beat Wall Street expectations. <a href="https://techcrunch.com/tag/facebook/">Meta</a> generated $64 billion in revenue during the past quarter, marking a 26% increase compared to the same period a year earlier.

However, operational costs and expenses also climbed significantly, rising 68% year over year as the enterprise scales its infrastructure. Reality Labs, the division dedicated to augmented reality glasses, virtual reality headsets, and VR software, continues to experience financial losses, though management expects those losses to shrink from 2025 levels down to between $18 billion and $19 billion.

Scaling Artificial Intelligence Products

Over the past year, <a href="https://techcrunch.com/2026/10/21/meta-wants-to-pay-for-its-broad-ai-buildout-with-a-newly-created-class-of-stock/">Meta</a> has rolled out numerous artificial intelligence models and developer tools. Following the release of Muse Spark and Muse Glimmer earlier in the year, the company recently introduced <a href="https://about.fb.com/news/2026/10/introducing-muse-wonder-models/">Muse Wonder</a> and Muse Spark Open, an open-weight model designed for external developers.

The company also launched <a href="https://techcrunch.com/2006/08/05/meta-launches-muse-code-an-ai-agent-for-large-code-bases/">a coding agent</a> named Muse Code to assist software developers with large code bases. Additionally, consumer-facing features like the Meta Muse assistant continue to gain traction.

Chief Executive Officer Mark Zuckerberg highlighted the rapid adoption of these offerings during the earnings call, noting that more than 10 million people in the U.S. and Canada set up Muse personal agents within just a month and a half. Zuckerberg stated that the company is now entering a new, more operational phase focused on scaling the product to eventually serve billions of users globally.

Regulatory Scrutiny and Future Outlook

Despite strong commercial momentum and positive financial metrics, company executives acknowledged that external challenges remain on the horizon. Susan Li noted that Meta continues to monitor active legal and regulatory matters that could influence future business results.

In particular, the company faces ongoing scrutiny regarding youth-related issues across multiple markets, with several related legal trials scheduled in the United States in the upcoming months. Management intends to use its expanded financial flexibility and new stock instruments to navigate these challenges while funding its long-term growth.