Key facts
- New non-voting shares to fund AI expansion.
- Capital expenditure forecast raised to $135 billion-$145 billion.
- Quarterly revenue of $64.60 billion beat estimates.
- Fourth-quarter revenue forecast above estimates.
- $25 billion penalty ordered in New Mexico data sharing case.
- $18 billion settlement over claims of addicting children.
Meta Platforms Inc. announced on Wednesday it will introduce a new class of non-voting shares to help finance its significant investments in artificial intelligence. The company also revised its annual capital expenditure forecast upwards, now expecting to spend between $135 billion and $145 billion, an increase from the previous $130 billion to $145 billion range. Meta reported better-than-expected quarterly revenue of $64.60 billion, surpassing Wall Street estimates, and projected fourth-quarter revenue to also exceed expectations. The company's AI initiatives, including its consumer-focused AI agent Muse and new AI models, are intended to bolster its competitive position against rivals like OpenAI and Anthropic. However, Meta faces mounting legal challenges, including a $25 billion penalty ordered by a New Mexico judge for misleading residents about data sharing and enforcing policies on hate speech and misinformation. Additionally, Meta agreed to a settlement of up to $18 billion to resolve claims that its platforms were designed to addict children.