Meta is planning to support its aggressive expansion in artificial intelligence by introducing a new class of non-voting stock. The announcement came alongside the company’s third-quarter earnings report, where CFO Susan Li detailed that this new stock would be distributed to existing shareholders as a dividend. This approach aims to provide Meta with additional capital-raising tools while safeguarding the voting rights held by current Class A and B shareholders, thereby maintaining the company’s founder-controlled structure.

The new shares are designed to help fund a variety of purposes, including employee compensation, acquisitions, and broader corporate investments, particularly focusing on Meta's rapidly growing AI initiatives. According to Li, adding this non-voting stock will expand Meta’s financial flexibility to invest in its business, which is increasingly driven by momentum in artificial intelligence across its product lines and services.

Meta’s recent financial results showed strong growth, with revenues hitting $64 billion, a 26% increase year-over-year, although expenditures also surged by 68%. The company’s Reality Labs division, responsible for AR and VR products, continues to experience losses but is on a trajectory to reduce them from previous years. Meanwhile, Meta’s AI efforts have gained significant traction, with products like Muse personal agents reaching over 10 million users in North America shortly after launch, as noted by CEO Mark Zuckerberg.

Looking ahead, Meta is focused on scaling its AI products to reach a global audience, aiming to serve billions eventually. However, the company remains cautious about ongoing regulatory scrutiny and legal challenges, particularly those related to youth privacy and safety in various markets. These challenges could have a material effect on the company’s business and financial outcomes as it continues its transformational push into AI technology.