Meta to create non-voting share class for AI funding, narrows 2026 capex forecast
In short
Meta said with its third-quarter results that it will create a new class of non-voting shares to help fund its AI push, acquisitions and employee pay. It narrowed its 2026 capital expenditure forecast to $135 billion to $145 billion from $130 billion to $145 billion.
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Meta said it is issuing a new class of non-voting shares to fund its AI initiatives, according to The Verge. The company announced the move as part of its third-quarter earnings report released on Wednesday. The shares will also go toward potential acquisitions and employee compensation, with trading beginning in 2027. Reuters' headline said Meta is issuing the shares as it tightens its AI spending forecast. [ 1 , 3 ]
TechCrunch reported that Semafor had said Meta might issue non-voting stock, and that the company confirmed this on its earnings call. Chief financial officer Susan Li said Meta plans to "create a new class of non-voting capital stock, which will be distributed to all existing shareholders through a stock dividend." She said it was created for "capital raising, employee compensation, acquisitions, and other general corporate purposes while preserving the voting power of existing Class A and B shareholders." Li added that the shares will allow the company to maintain its "founder-led structure." [ 4 ]
Meta now expects capital expenditures of $135 billion to $145 billion for 2026, narrowed from $130 billion to $145 billion last quarter. Business Insider reported that Meta spent $34.91 billion on capital expenditures in the third quarter, up from $31.08 billion in the second, and that the yearly forecast includes the $139.79 billion that analysts expected. It said investors have not liked large capex forecasts in past quarters: the stock fell almost 10% last quarter after earnings per share missed estimates, and sank 6% the quarter before on raised capex guidance. [ 2 , 3 ]
TechCrunch described the quarter's earnings as strong and beating Wall Street expectations, with revenue of $64 billion, up 26% from a year earlier. Costs and expenses rose 68%. Reality Labs continues to lose money, and Meta said it expects the division's losses to shrink from 2025 levels to between $18 billion and $19 billion. [ 4 ]
Business Insider called the Muse AI assistant Meta's new hero product this quarter and said it could help justify the capex guidance for some investors. It reported over 2 million daily users and 3 million downloads. The Verge said Muse launched in September, reached the top of app stores, and hit 10 million downloads in the US this week. Meta also rolled out its Muse Wonder model this week, The Verge said. [ 2 , 3 ]
The Verge reported that Muse's launch has had snags. A tech YouTuber reported that the agent gave out his address to a stranger on Facebook Marketplace, and Meta paused Muse's conversation-sharing feature after researchers found chats publicly available on the web. Business Insider reported the stock was trading up 4.12% after hours at the time of publication. [ 2 , 3 ]
Why it matters
The new share class gives Meta another way to raise money for AI spending while keeping the voting power of existing Class A and B shareholders, according to its chief financial officer. Outlets also tie the spending to the Muse AI assistant, which Business Insider said could help justify the forecast for some investors.
Key facts
- Meta said it is creating a new class of non-voting stock to fund its AI initiatives, potential acquisitions and employee compensation, with trading beginning in 2027. [ 3 ]
- Chief financial officer Susan Li said the new class of non-voting capital stock will be distributed to all existing shareholders through a stock dividend. [ 4 ]
- Meta now expects 2026 capital expenditures of $135 billion to $145 billion, narrowed from $130 billion to $145 billion last quarter. [ 2 , 3 ]
- Meta spent $34.91 billion in capital expenditures in the third quarter, up from $31.08 billion in the second quarter. [ 2 ]
- TechCrunch reported third-quarter revenue of $64 billion, up 26% from a year earlier, with costs and expenses up 68%. [ 4 ]
- Business Insider reported the stock was trading up 4.12% after hours at the time of publication. [ 2 ]
Confirmed by several sources
- Meta announced it will issue a new class of non-voting shares to support its AI spending, alongside its third-quarter earnings. [ 1 , 3 , 4 ]
- Meta narrowed its 2026 capital expenditure forecast to between $135 billion and $145 billion, from $130 billion to $145 billion. [ 1 , 2 , 3 ]
- Meta's Muse AI assistant rose quickly in the app stores after its launch. [ 2 , 3 ]
Still unclear
- How many people use Muse. Business Insider reported over 2 million daily users and 3 million downloads, while The Verge reported 10 million downloads in the US this week; the documents do not reconcile the figures.
- When the stock dividend distributing the new shares will take place. The Verge says trading begins in 2027; the documents give no distribution date.
- Muse privacy problems. Only The Verge reports a YouTuber's claim that the agent gave out his address to a stranger, and that researchers found chats publicly available on the web.
What local media are saying
Timeline, local time
- Reuters published a report headlined that Meta will issue a new class of shares as it tightens its AI spending forecast. [ 1 ]
- Business Insider published its report on the narrowed capex forecast. [ 2 ]
- The Verge published its report on the new share class. [ 3 ]
- TechCrunch published its report, saying Meta confirmed on its earnings call the Semafor report on non-voting stock. [ 4 ]