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Meta Announces New Non-Voting Share Class to Fund AI Investment
According to The Verge, Meta said in its third-quarter earnings that it will issue a new class of non-voting shares for AI initiatives, potential acquisitions and employee compensation, with trading to begin in 2027. It shows how large the funding needs of the AI race are.
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What happened
According to The Verge, Meta said it will issue a new class of shares to fund its AI initiatives. The Verge reports that Meta announced this in its third-quarter earnings released on Wednesday (the report is dated October 21, 2026).
The Verge says Meta stated that these non-voting shares (holders own a stake in the company but have no right to vote at shareholder meetings) will also be used for potential acquisitions and employee compensation, with trading to begin in 2027.
What Meta said
The Verge quotes Meta's press release: "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." In short: amid the industry's AI transformation, the investment needed to compete, sustain growth, expand infrastructure and pursue new strategic initiatives is substantial.
According to The Verge, Meta CFO Susan Li said on the earnings call (the call in which a company briefs analysts on its results) that the new share class 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." In short: it widens the company's funding tools and gives it flexibility to invest behind the unprecedented momentum AI is bringing across its businesses.
Key figures and context
Capital expenditure is what a company spends on long-term assets such as building data centers and buying equipment. The table below summarizes the main figures in The Verge's report.
| Item | What The Verge reports |
|---|---|
| New share class | Non-voting shares, trading begins in 2027 |
| Use of funds | AI initiatives, potential acquisitions, employee compensation |
| Expected capital expenditure this year | $135 billion to $145 billion |
| Previous capital expenditure estimate | $130 billion to $145 billion |
| Muse AI agent | Launched in September; 10 million US downloads this week |
The Verge says Meta has already poured billions of dollars into the AI race, including building large data centers, poaching top talent from companies such as OpenAI, and developing AI models that can rival those of other tech giants.
Muse's progress and controversy
According to The Verge, Meta launched the AI agent Muse in September. An AI agent is an AI tool that performs tasks on a user's behalf; for example, Muse can help clean up an email inbox, book restaurants and plan trips. The report says the Muse app topped the app store charts soon after launch, reached 10 million downloads in the US this week, and Meta also released the Muse Wonder model this week.
The Verge also mentions controversy: amid privacy concerns, a tech YouTuber reported that Muse gave his address to a stranger on Facebook Marketplace; after researchers found chats publicly visible online, Meta also paused Muse's conversation-sharing feature.
What it means for general readers
The news shows that the funding needed for the AI race is huge and that Meta is seeking more funding tools. For everyday users, Meta's AI products such as Muse are still expanding quickly, but they also come with privacy and data-leak concerns, so be mindful of what personal information an AI agent can access. This article does not constitute investment advice.
Frequently asked questions
What are the features of Meta's new share class?
According to The Verge, Meta said these are non-voting shares that, besides funding AI initiatives, will also be used for potential acquisitions and employee compensation, with trading to begin in 2027.
What are non-voting shares?
Non-voting shares give the holder an ownership stake in the company but no right to vote at shareholder meetings on company decisions.
How much capital expenditure does Meta expect this year?
The Verge reports Meta expects capital expenditures this year of $135 billion to $145 billion, compared with the earlier estimate of $130 billion to $145 billion.
What problems has Muse had?
The Verge mentions that a YouTuber reported Muse revealed his address to a stranger, and that Meta paused conversation sharing after researchers found chats publicly visible online.
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