Meta Raises AI Spending, Plans Nonvoting Shares

Meta reported record third-quarter revenue of $64.6 billion, up 26% year over year, as AI-driven gains lifted advertising revenue; a $9.9 billion charge tied to a youth-safety settlement sharply reduced reported earnings. Separately, a New Mexico judge ordered Meta to pay $25 billion over data-privacy findings, and the company plans to appeal. Meta forecast fourth-quarter sales of $73 billion to $76 billion, reported $34.9 billion in capital expenditures, and raised its 2026 capital-spending outlook to $135 billion–$145 billion; free cash flow turned negative, and the company disclosed about $825 billion in future commitments, many tied to AI infrastructure. Beyond advertising, Meta is developing its Muse assistant and an enterprise platform with business-focused models, APIs and agents that could generate subscription and usage-based revenue. To fund AI investment while preserving Mark Zuckerberg’s voting control, Meta plans a two-for-one stock split and approved nonvoting Class C shares for existing shareholders on a one-for-one basis, with the structure expected to take effect in 2027; filings also cite concern about a potential California billionaire tax. The share structure added investor uncertainty, though some analysts remained optimistic about Meta’s advertising momentum and AI prospects.