Meta wants to pay for its broad AI buildout with a newly created class of stock
techcrunch ·
Meta is introducing a new class of non-voting stock to help finance its extensive artificial intelligence expansion while preserving the voting control of existing shareholders. During its third-quarter earnings report, CFO Susan Li confirmed that these shares will be distributed to all current owners as a stock dividend. This strategic move aims to provide capital for employee compensation, acquisitions, and general corporate purposes without diluting the influence of founders Mark Zuckerberg and others. The financial results for the quarter were strong, with revenue reaching $64 billion, although costs rose significantly by 68% year-over-year. Meta's Reality Labs division continues to incur losses, though these are expected to decrease to between $18 billion and $19 billion in 2025. On the product front, Meta’s AI assistant, Muse, has gained over 10 million users in the U.S. and Canada within just six weeks. CEO Mark Zuckerberg stated that the company is now focusing on scaling the platform to serve billions of people globally. Despite this growth, Meta remains vigilant about ongoing regulatory scrutiny and legal challenges related to youth safety in various markets.
techcrunch