People familiar with the matter say Meta plans to introduce a new class of non-voting stock, indicating the company could rely heavily on share sales to raise capital for its artificial intelligence (AI) buildout.
The proposal — which could be announced as soon as Wednesday when Meta reports quarterly earnings — would let the company issue new stock to fund acquisitions, attract top AI talent and pay for chips, without diluting Mark Zuckerberg’s control.
For comparison, Alphabet made a similar move in 2014 by executing a 2-for-1 stock split that created non-voting shares alongside super-voting shares. That structure helped co-founders Larry Page and Sergey Brin keep combined control just above 50%. Earlier this year, Alphabet issued about $85 billion of new stock to finance AI investments; roughly half of those new shares carry no voting rights.
A Meta spokesperson declined to comment.
Historically, big tech firms have offset new stock issuance by buying back shares in the open market. But as companies paused buybacks and AI-related costs have risen, several firms have become net issuers of shares, increasing the risk that insiders’ stakes will be diluted.
Why this matters
Issuing non-voting stock gives a company a way to raise capital quickly without reducing the voting power of existing insiders. At the same time, it changes the ownership and voting structure for other shareholders and affects how capital allocation decisions — such as buybacks versus new issuances — influence market valuation and insider ownership.
Brief summary
According to people familiar with the matter, Meta is considering non-voting shares to finance AI investments, with a potential announcement tied to its quarterly results. The move would mirror past steps by Alphabet and reflects how large tech companies are raising funds while managing control and dilution risks.
