Hajra Naz
Meta is making a major push into artificial intelligence. The company is creating a new category of stock to help fund these massive investments.
On Wednesday, Meta released its third-quarter financial earnings. Media reports indicated that the tech giant might issue non-voting shares. These are equity shares that do not grant owners voting rights on corporate decisions. The goal is to raise capital for artificial intelligence initiatives.
During the earnings conference call, company executives confirmed these reports. Susan Li serves as Meta’s chief financial officer. She stated that the firm plans to create a new class of non-voting capital stock. This stock will be distributed to existing shareholders via a stock dividend.
Li provided further details during the discussion. She explained that the company engineered this new share class to establish a publicly traded, non-voting stock. This asset can be utilized for raising capital, rewarding employee compensation, executing corporate acquisitions, and covering general business needs. Simultaneously, the structure preserves the voting power held by existing Class A and Class B shareholders.
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The new shares allow the organization to maintain its current founder-led corporate structure. Li added that the initiative expands their funding toolkit. It provides operational flexibility to invest behind unprecedented business momentum driven entirely by artificial intelligence across every division.
Meta reported strong financial earnings for the past quarter. The results outperformed Wall Street expectations. Total revenue reached $64 billion. This figure represents a 26 percent increase compared to the same period a year earlier. However, corporate costs and expenses also climbed significantly, rising by 68 percent year-over-year.
Reality Labs is the internal division responsible for augmented reality glasses, virtual reality headsets, and immersive software. The unit continues to operate at a financial loss, though those losses have narrowed. In its earnings report, the company stated it expects Reality Labs losses to drop below 2025 levels, landing between $18 billion and $19 billion.
Meta has accelerated its artificial intelligence development significantly over the past year. The tech giant has released multiple advanced AI models. These releases included Muse Spark and Muse Glimmer earlier this year.
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In recent weeks, the company introduced Muse Wonder and Muse Spark Open. The latter is an open-weight model whose underlying parameters are publicly accessible, allowing outside developers to build applications on top of it.
Meta also launched an automated coding agent for software developers named Muse Code. During the annual Meta Connect event, the company unveiled a series of friendly avatars for its assistant, Meta Muse. This move aims to make AI services more relatable and engaging for everyday users.
Consumer adoption metrics for these new AI products appear strong. Mark Zuckerberg serves as Meta’s chief executive officer. During Wednesday’s earnings call, Zuckerberg reported that more than 10 million people across the United States and Canada set up personalized Muse agents in just a month and a half.
Growth remains exceptionally strong, according to the CEO. He noted that Meta has held the number one spot in mobile application stores almost every single day.
Zuckerberg outlined the next steps for the platform. He stated that because Muse achieved clear product-market fit, the company is entering a new operational phase centered on mass scaling. He added that Meta ultimately expects to expand the product’s appeal to serve billions of people worldwide.
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Despite positive financial and product momentum, corporate leaders acknowledged lingering challenges. Regulatory and legal hurdles remain on the horizon. Susan Li addressed these concerns directly. She noted that the company continues to monitor active legal and regulatory matters that could significantly impact business operations and financial results.
For example, Meta faces ongoing scrutiny regarding youth safety in multiple global markets. Several major legal trials focused on youth-related allegations are scheduled in the United States over the coming months.
