Meta to create new non-voting share class to fund AI push

Meta will create a new class of publicly listed, non-voting Class C shares to help fund its AI push, acquisitions and employee pay, the company said in its third-quarter 2026 earnings release on Wednesday.

What Meta announced. Meta's board approved the new Class C common stock on the unanimous recommendation of a special committee of independent directors, according to the release. Meta says the shares are for capital raising, employee compensation, potential acquisitions and other general corporate purposes.

Why it says it needs them. "The scale of investment required to compete, sustain growth, expand infrastructure, and pursue new strategic initiatives amidst the AI transformation taking place in the industry is significant," Meta said in the release.

How the shares arrive. Meta says the new class takes effect on January 19, 2027, and the board declared a one-time dividend of one Class C share for each Class A and Class B share. Meta says it intends to list the Class C stock on Nasdaq and that the dividend will not change any shareholder's voting power.

CFO ties it to AI. On the earnings call, chief financial officer Susan Li said the shares 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," as reported by The Verge.

Spending backdrop. Meta narrowed its 2026 capital expenditure outlook to $135 billion to $145 billion from $130 billion to $145 billion, raising the low end of the range, according to the release.

Muse momentum. Meta's Muse AI agent, launched in September, hit 10 million US downloads this week, The Verge reported.