Meta creates new non-voting stock class to fund AI expansion
In brief
- Meta introduces a new class of non-voting shares to fund its AI expansion.
- Shares will be distributed to existing shareholders via a stock dividend.
- Reality Labs division remains unprofitable despite overall revenue growth.
Meta is introducing a new class of non-voting shares to finance its AI expansion. According to third-quarter earnings, the company plans to distribute these shares to existing shareholders as a stock dividend.
CFO Susan Li explains that these shares will help raise capital for acquisitions, employee compensation, and other corporate needs while preserving voting power for current Class A and B shareholders. Meta frames this move as necessary to support its rapid growth, especially in AI-related divisions.
Quarterly results show a 26% revenue increase but a 68% rise in costs. Reality Labs, Meta’s VR and AR division, continues to weigh on finances, with expected losses between $18 billion and $19 billion in 2025.
What it changes for you
- Public SectorRegulators may closely monitor this innovative financing strategy, particularly regarding its impact on governance and the concentration of decision-making power.
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