Meta to fund $64 billion revenue surge with new non-voting shares

Meta has announced a significant structural change to its equity offering as it seeks to finance its rapid expansion into artificial intelligence. During its third quarter earnings report on Wednesday, the company confirmed it will create a new class of non-voting capital stock. This move is designed to raise capital for AI initiatives without diluting the voting power of current Class A and B shareholders.

The new shares will be distributed to all existing shareholders through a stock dividend, according to Susan Li, Meta’s chief financial officer. Li explained that this instrument is intended for capital raising, employee compensation, and acquisitions. By keeping the new shares non-voting, the company aims to preserve its founder-led governance structure while expanding its financial tools.

Meta reported strong financial performance for the quarter, with revenue reaching 64 billion dollars, a 26 percent increase from the same period last year. However, the company’s costs and expenses rose sharply, climbing by 68 percent year over year. This increase reflects the heavy investment required to support its growing AI infrastructure and other business operations.

The company’s Reality Labs division, which develops augmented reality glasses and virtual reality headsets, continues to operate at a loss, though the deficit is expected to narrow. Meta projects that the division’s losses will decrease from 2025 levels to a range of 18 to 19 billion dollars. This trend indicates a gradual path toward improved profitability for the hardware and software segment.

Over the past year, Meta has accelerated its AI product releases, including the Muse Spark and Muse Glimmer models. More recently, the company introduced Muse Wonder and Muse Spark Open, the latter being an open-weight model with publicly available parameters. Meta also launched Muse Code, a coding agent for developers, and unveiled a new line of avatars for its AI assistant, Meta Muse, at its Connect event.

CEO Mark Zuckerberg highlighted the strong adoption of these new tools, noting that more than 10 million people in the U.S. and Canada have set up Muse personal agents in just six weeks. He stated that the product has achieved clear market fit and that the company is now entering a scaling phase. Zuckerberg expressed confidence that the service is on track to eventually serve billions of users.

Despite the positive momentum, Li noted that regulatory and legal challenges remain. The company is currently facing increased scrutiny regarding youth-related issues in several markets. Several trials concerning these matters are scheduled to take place in the United States in the coming months, which could impact future financial results.