Meta to create a new class of shares to fund AI push

Meta announced plans to launch a new class of shares to fund its artificial intelligence (AI) initiatives, acquisitions, and employee compensation, according to the company's third-quarter earnings report released on Wednesday. The non-voting stock will be available for trading in 2027, the company said. CEO Mark Zuckerberg emphasized the significant scale of investment required to compete and sustain growth amid the AI transformation in the industry.

Meta's CFO Susan Li added that the new share class will expand the company's funding tools and provide flexibility for investing in AI-driven business growth. The tech giant has already allocated between $135 billion and $145 billion for capital expenditures this year, reflecting the company's intensified focus on AI. Meta has poured billions of dollars into AI, including building data centers, hiring top talent, and developing AI models to rival those from other tech giants.

The company's AI agent, Muse, was launched in September and quickly gained popularity, topping app store charts and amassing 10 million downloads in the US. However, Muse has also faced some setbacks, including privacy concerns and a pause on its conversation-sharing feature after researchers found publicly available chats.