Sources: Meta Plans Non-Voting Shares to Fund AI Buildout Without Diluting Zuckerberg
Semafor reports Meta intends to issue new non-voting stock to finance its AI expansion, aiming to preserve CEO Mark Zuckerberg's voting control, possibly announced alongside quarterly earnings.
According to an exclusive report by Semafor, Meta Platforms (the US social media giant) plans to introduce new non-voting stock, allowing it to fund its artificial intelligence infrastructure buildout through share sales without diluting the voting control of CEO Mark Zuckerberg.
The plan could be announced as soon as Wednesday when Meta reports quarterly earnings. The new equity structure would enable the company to issue stock for acquisitions, to attract top AI talent, and to pay for chips, while maintaining the founder's super-voting position. This strategy mirrors Alphabet's (Google's parent company) move in 2014, which introduced non-voting shares alongside super-voting shares to keep co-founders Larry Page and Sergey Brin's combined control above 50%, facilitating the issuance of $85 billion in new stock earlier this year for AI investments.
Big tech companies have historically balanced new stock issuance by buying back shares in the market. However, they have paused repurchases as the cost of their AI investments mounts, now finding themselves as net issuers of shares, which risks diluting insiders' stakes. A Meta spokesperson declined to comment.