Meta to create a new class of shares to fund its AI push

Meta, the US technology company that owns Facebook and Instagram, announced on Wednesday that it will create a new class of shares. The announcement came with its third-quarter earnings report. The stock will carry no voting rights, and trading is due to begin in 2027. The company plans to use the proceeds to fund artificial intelligence (AI) initiatives, potential acquisitions and employee compensation.

In its press release, Meta said the investment needed to compete, sustain growth, expand infrastructure and pursue new strategic initiatives during the AI transformation of the industry is significant. Chief financial officer Susan Li told an earnings call that the new share class will broaden the company's funding tools and give it flexibility to invest, given the momentum it sees across its business driven by AI.

Heavy spending on AI

Meta has put billions of dollars into the AI race. It is building large data centers, hiring top talent from other companies, including OpenAI, and developing AI models meant to rival those of other tech giants. The company now expects capital expenditures of $135 billion to $145 billion this year, compared with its earlier estimate of $130 billion to $145 billion.

The Muse agent

In September, Meta launched an AI agent called Muse. Like other AI agents, it can do tasks such as clearing out an email inbox, booking restaurant tables and planning trips. The Muse app climbed to the top of app stores soon after launch and reached 10 million downloads in the US this week. Meta also released its Muse Wonder model this week.

The rollout has had problems. Amid privacy concerns, a tech-focused YouTuber reported that the agent gave his address to a stranger on Facebook Marketplace. Meta has also had to pause Muse's conversation-sharing feature after researchers found chats publicly accessible on the web.