Meta plans non-voting shares as it raises AI spending forecast

Meta said on October 21 it would introduce a class of non-voting shares and raised the lower end of its 2026 capital spending forecast, Reuters reported. The changes come as the Facebook and Instagram owner spends heavily on artificial intelligence, putting its cash generation and shareholder control in focus.

Meta raises its 2026 spending floor

Meta now expects capital expenditure of $135 billion to $145 billion this year, compared with its previous range of $130 billion to $145 billion, according to Reuters. The upper end stayed the same, while the minimum rose by $5 billion. The higher floor gives investors a firmer measure of the scale of Meta's planned investment in AI infrastructure.

How the non-voting shares could be used

Reuters said the planned non-voting shares may help Meta finance acquisitions and attract staff without reducing chief executive Mark Zuckerberg's voting control. Reuters did not report the shares' terms, issuance timetable or proposed amount, leaving their practical financing effect unclear.

Meta has been spending on chips and data centers to compete more aggressively with AI developers including OpenAI and Anthropic, Reuters reported. That investment has eroded the company's historically strong free cash flow, making the scale of its capital spending a central issue for investors.

Reuters reported that early interest in Meta's consumer AI agent Muse and a new series of AI models had helped make the spending case to investors. Some businesses have restricted Muse's access because of security concerns, the report said.

AI spending worries were already moving markets

Investors were already watching Meta's earnings before the announcement. Yonhap News Agency reported that South Korea's Kospi index opened 2.05% higher on October 21 as traders weighed concerns about returns on AI infrastructure. Samsung Electronics rose 4.14% and SK hynix 5.89% in early trading, according to Yonhap. Those moves preceded Meta's results.

Meta's Reels video product competes with TikTok and YouTube Shorts, while Threads competes with X, Reuters reported. The company also uses AI to improve ad targeting and content recommendations across its services.