Meta Considers Nonvoting Shares to Finance AI Development

WHO:

Wall Street Journal - Meta said it will create a new class of nonvoting stock.

Wall Street Journal - Meta CEO Mark Zuckerberg’s voting control will not be affected by the new stock.

IJR - Meta is considering issuing nonvoting shares while preserving Mark Zuckerberg’s voting control.

IJR - Existing Meta shareholders could be affected through dilution of their economic interests.

WHAT:

Wall Street Journal - Meta said it will create a new class of nonvoting stock to raise capital for developing AI models.

Wall Street Journal - Meta reported record third-quarter revenue of $64.2 billion.

IJR - Meta is considering nonvoting shares to help finance its large AI investments, potentially including infrastructure, acquisitions, and hiring.

IJR - The proposed shares could provide funding flexibility but dilute existing shareholders’ economic interests.

WHEN:

Wall Street Journal - The new stock is expected to have an effective date in January 2027.

WHY:

Wall Street Journal - Meta said it needs capital to develop AI models.

IJR - Meta is weighing the shares to help finance its large AI investments.

HOW:

Wall Street Journal - Meta plans to raise capital by creating a new class of nonvoting stock, which the company said will not affect Zuckerberg’s voting control.

IJR - Issuing nonvoting shares could fund AI-related infrastructure, acquisitions, and hiring while preserving Zuckerberg’s voting control.

(UPDATED October 21, 2026 22:31 UTC)

Meta plans to create a new class of nonvoting stock to raise money for developing artificial intelligence models, while keeping CEO Mark Zuckerberg’s voting control unchanged. The company says the new shares are intended to help finance its substantial AI investments. Potential uses for the funding include infrastructure, acquisitions, and hiring. The structure could give Meta more flexibility to raise capital without changing who controls votes at the company. However, issuing additional shares could dilute existing shareholders’ economic interests. That means current investors may own a smaller share of Meta’s overall economic value, even though Zuckerberg’s voting power would not be affected. Meta also reported record third-quarter revenue of $64.2 billion. The new stock is expected to take effect in January 2027.