Meta to Create Non-Voting Class C Shares to Fund AI Investments

Meta has announced the creation of a new class of non-voting Class C ordinary shares, scheduled to take effect in January 2027. The move is designed to provide additional funding for the company's large-scale artificial intelligence investments while preserving CEO Mark Zuckerberg's voting control.

Under the plan, the new shares will be distributed to existing investors as a stock dividend, with holders receiving one new share for each share they own, effectively equivalent to a two-for-one stock split. Meta said the arrangement aims to supply more capital for its AI initiatives.

The company is currently directing tens of billions of dollars into chip and data center construction to support AI infrastructure expansion. Meta has also raised the lower end of its 2026 capital expenditure guidance from $130 billion to $135 billion, keeping the upper end at $145 billion. In the third quarter, Meta's free cash flow turned negative for the first time since going public, at -$2.2 billion.