The Globe and Mail reports in its Thursday edition that Meta introduced new non-voting shares on Wednesday in a move that would help fund its costly artificial intelligence expansion, as it reported strong growth of its consumer AI agent app Muse.
A Reuters dispatch to The Globe reports that Meta is forecasting fourth quarter revenue above Wall Street estimates.
Meta has been pouring money into advanced chips and datacentres to compete more aggressively with OpenAI and Anthropic, eroding its historically strong free cash flow.
Meta will issue a new class of non-voting Class C common stock in January, 2027, resulting in a two-for-one split, to fund acquisitions and retain top talent while keeping chief executive officer Mark Zuckerberg's control amid Silicon Valley's intensifying AI race.
The CEO said more than 10 million people in the United States and Canada have set up Muse accounts in a month and a half, and growth remained strong. He said he expected Muse would serve "billions of people" who would potentially generate more revenue than the average Meta user.
Meta is now expecting capital expenditure to be between $135-billion and $145-billion this year, up from $130-billion to $145-billion expected previously.
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