Meta is making a big push into AI, and it’s creating a new kind of stock that could help pay for it.
On Wednesday, as the company reported its third-quarter earnings, Semafor reported the company might issue non-voting stock, meaning shares that don’t give their owners a vote on company decisions, to help fund its push into artificial intelligence.
During Meta’s earnings call, the company confirmed that reporting. Meta’s chief financial officer, Susan Li, said the company plans to “create a new class of non-voting capital stock, which will be distributed to all existing shareholders through a stock dividend.”
Li later added that the company “created this new class of shares with the purpose of creating a publicly traded non-voting stock usable for capital raising, employee compensation, acquisitions, and other general corporate purposes while preserving the voting power of existing Class A and B shareholders.”
The shares will allow the company to maintain its current “founder-led structure,” she added. They will also expand its “funding tools and give us flexibility to invest behind the unprecedented momentum we’re seeing across every part of our business, driven by AI.”
Meta’s earnings were strong this past quarter, beating Wall Street expectations. The company made $64 billion in revenue, a jump of 26% from a year earlier. Its costs and expenses also rose too, however, by 68% year over year.
Reality Labs, the division responsible for Meta’s AR glasses, VR headsets, and VR software, continues to lose money, though less than it used to.
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