Meta plans non-voting shares to fund its AI spending
The company is also raising its capital expenditure forecast while its Muse agent faces privacy scrutiny.
Meta plans to issue a new class of non-voting shares, with trading set to begin in 2027, to raise money for its AI push, potential acquisitions and employee pay. Announced alongside its third-quarter earnings, the move reflects how heavy the spending needed to compete in AI has become. The company now expects capital expenditure of $135 billion to $145 billion this year, up from its earlier range of $130 billion to $145 billion. The pressure comes as Meta spends heavily on data centers, recruits senior staff from rivals such as OpenAI and builds competitive models. Its recently launched Muse agent has passed 10 million US downloads, but the rollout has drawn scrutiny over privacy, including a reported case of the agent disclosing a home address and a pause on a conversation-sharing feature after chats were found publicly accessible.
Why it matters
For technology followers, the move shows how costly the AI race has become, even for the largest companies. Meta is turning to new equity to pay for data centres, senior hires and possible acquisitions, and the shares will carry no voting rights, so existing control stays with current holders. Its raised spending outlook and the privacy problems with Muse add to the picture of a company paying heavily to compete while still working out how its consumer AI products should handle user data.
Matters or hype?
Does this story matter, or is it hype? Vote before you see what everyone else said.
Sources
- The Verge