Meta plans new share class to fund AI expansion amid rising profits

Meta Platforms is preparing a new class of C shares to provide flexible financing for its artificial intelligence expansion. This new share structure is designed to carry no voting rights, allowing the company to raise capital or settle stock-based compensation while preserving Mark Zuckerberg’s existing control over the corporation.

The company’s recent financial performance shows significant growth, with annual revenue increasing by 26 percent to approximately 56 billion euros. Net profit for the July–September period reached about 8.5 billion euros, more than triple the amount from the same period last year. This growth is attributed to AI-driven recommendations, increased ad volume, and higher advertising prices.

Despite the profit surge, Meta’s quarterly free cash flow turned negative for the first time since 2012 due to massive investments in data centers, chips, and electrical infrastructure. Meta projects capital expenditures between 135 and 145 billion dollars this year to support its AI ambitions, including the development of its AI agent, Muse, which has already gained over 10 million users in the US and Canada.