Meta Will Split Stock, Create New Class to Fund AI Spending

Live updates

1. 51m ago

   Meta Creates New Nonvoting Stock Class to Fund AI

   Meta plans to split its stock and create a new class of nonvoting Class C shares to finance its expansive artificial intelligence initiatives. The announcement accompanied third-quarter earnings reporting $64.6 billion in revenue, alongside strong growth for the Muse AI agent, which surpassed 10 million accounts. The new share structure is designed to help fund growing infrastructure and capital expenditures while keeping co-founder and chief executive officer Mark Zuckerberg in control. Investors reacted with caution as shares dropped in early trading amid concerns over potential economic dilution and soaring spending.

   Why it matters

   The strategic shift highlights how major technology firms continue to pour massive capital into artificial intelligence hardware and development despite mounting cash pressures. By introducing a nonvoting stock class, leadership can raise fresh capital through share sales without diluting the voting power held by Mark Zuckerberg. This financial maneuver tests Wall Street appetite for escalating AI investments.

   What is confirmed

   • Meta is creating a new class of nonvoting shares to fund its artificial intelligence initiatives.
   • The company reported $64.6 billion in third-quarter revenue.
   • Mark Zuckerberg stated that Muse accounts have topped 10 million.
   • Meta stock fell 6.5% in early trading as investors weighed the implications of the new share class.

   What to watch next

   • Execution of the stock split and Class C share dividend scheduled for January 2027
   • Further details on future stock sales and capital expenditure guidance
   • Market reaction to potential economic dilution of existing shareholders
   Sources used for this update (18)

   1. finance.yahoo.com — Yahoo Finance - Stock Market Live, Quotes, Business & Finance News
   2. help.naver.com — Futures Flat As Oil Rebounds After Trump's "Energy Ceasefire" Unravels, Memory Stocks Slide | ZeroHedge
   3. CNBC — Meta earnings live updates: AI spending, ad revenue and stock reaction
   4. Yahoo Finance — Meta earnings live: Meta Q3 earnings to test Wall Street's stomach for AI spending
   5. WSJ — Meta Will Create New Stock Class to Fund AI Spending
   6. Bloomberg.com — Meta Boosts Bet on AI With New Spending Outlook, Stock Offering
   7. Semafor — Exclusive / Meta plans nonvoting shares, eyeing more stock sales to fund its AI dreams
   8. The New York Times — Meta Raises Its A.I. Spending, Even as Cash Pressures Grow
   9. Reuters — Meta's Muse AI agent achieves strong growth, company introduces new shares to power investments
   10. Business Insider — Meta performs stock split to keep Mark Zuckerberg in control
   11. TechCrunch — Meta wants to pay for its broad AI buildout with a newly created class of stock
   12. ADWEEK — Meta Beats Q3 Expectations With Strong Earnings
   confidence 100%