Meta creates non-voting Class C stock to fund AI spending

Meta said it will issue a new class of non-voting stock, called Class C common stock, to help pay for its AI work. The company announced the move alongside its third-quarter earnings. Its Board of Directors approved the new class, which will be publicly listed, with trading expected to begin in 2027.

According to the company, the shares are meant for AI spending, possible acquisitions and employee compensation. In its press release, Meta said the scale of investment needed to compete, grow and expand infrastructure during the AI transformation is significant. Chief financial officer Susan Li said on the earnings call that the new shares will expand the company's funding tools.

Because the stock carries no vote, Meta can sell shares to raise money without diluting the voting control held by CEO Mark Zuckerberg. That is the core design: capital comes in, and control stays where it is.

The announcement came with strong numbers. Meta reported third-quarter revenue of $64.6 billion, up 26% from a year earlier. The company also raised its capital spending plans. In his statement, Zuckerberg pointed to milestones toward what he called personal superintelligence for everyone, including the launch of Muse and Muse Wonder, which he described as Meta's first frontier model.

Our take

Meta is building a way to fund huge AI costs with stock while keeping Zuckerberg firmly in charge. Raising capital spending and creating new share currency in the same earnings report shows how expensive the AI race has become.