Meta to create a new class of shares to fund AI push
Meta is issuing a new class of non-voting shares to fund its massive investment in AI infrastructure and talent. The company has increased its capital expenditure forecast to between $135 billion and $145 billion for the year.
Why it matters
This move highlights the extreme financial pressure tech giants face to maintain dominance in the AI race, potentially impacting shareholder equity and corporate governance.
Meta says it’s issuing a new class of shares to fund its AI initiatives. As part of its third-quarter earnings report released on Wednesday, the company says the non-voting stock will also go toward potential acquisitions and employee compensation, with trading beginning in 2027.
“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,” Meta says in the press release. Susan Li, Meta’s chief financial officer, added during an earnings call that the new class of shares 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.”
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