Meta Plans New Non-Voting Stock to Fund Its AI Push

Meta's push into artificial intelligence is putting pressure on its finances even as revenue reaches a record. The Wall Street Journal Tech reported third-quarter revenue of $64.2 billion, while The New York Times reported that increased AI spending had hurt cash flow, which turned negative.

The new stock class is intended to help finance that investment without changing who controls the company. According to Financial Times, nonvoting shares would allow Meta to sell stock to fund AI investment without reducing Mark Zuckerberg's control.

On October 21, Meta disclosed the stock plan as part of its third-quarter earnings report, according to The Verge. The company said the shares would support its AI initiatives and potential acquisitions.

The earnings announcement also brought a higher capital spending outlook. Bloomberg Technology reported that Meta had increased that outlook alongside its plans for nonvoting stock, expanding its financial commitment to AI.

The control provisions are central to the plan. Business Insider reported that Meta wanted to preserve its "founder-led model," while The Wall Street Journal Tech said the new stock would not affect Zuckerberg's voting control.

Meta has announced a financing plan, not a completed fundraising. Financial Times described the change as enabling future share sales for AI investment. The supplied coverage does not specify an offering date, a share price or how much Meta intends to raise.

The immediate financial picture has two sides: record revenue and cash pressure from investment. As The New York Times reported, Meta is seeking another way to raise money while its spending weighs on cash flow.

The next details to watch are when Meta will issue the shares, how much it will seek to raise and how the proceeds will be allocated. The Verge reported that potential acquisitions are also among the intended uses, leaving the eventual split between deals and AI investment open.

Future earnings reports will show whether cash flow improves as investment continues. The higher spending outlook reported by Bloomberg Technology makes that an important measure alongside revenue growth.