Meta is placing its Muse AI agent at the center of its business strategy while preparing new shares to finance expansion. On October 21, the Facebook and Instagram parent outlined plans for non-voting Class C stock, targeting acquisitions, talent retention and costly AI infrastructure. The move aims to support competition with OpenAI and Anthropic while preserving CEO Mark Zuckerberg’s voting control.
Zuckerberg said Muse attracted more than 10 million accounts across the United States and Canada within six weeks. Meta wants the agent to grow into a broader platform for consumers and businesses, with monetization expected to begin sooner. The company also reported third-quarter revenue of USD 64.60 billion and forecast fourth-quarter revenue between USD 73 billion and USD 76 billion.
New Shares to Support AI Spending
Meta plans to issue Class C common stock in January 2027, creating a two-for-one split in economic terms. Existing shareholders will receive one non-voting share for each share held, allowing Meta to support investment without weakening Zuckerberg’s control. The company can use the new class for acquisitions, employee compensation and other corporate purposes.
Meta also raised its 2026 capital expenditure outlook to between USD 135 billion and USD 145 billion. The higher forecast reflects spending on advanced chips, data centers and infrastructure needed to develop competitive AI products. The investment is already weighing on cash generation, with Meta reporting a USD 2.12 billion free cash flow deficit for the third quarter.
Muse Could Diversify Meta’s Revenue
Meta expects its AI businesses to begin adding revenue in 2027, according to Chief Financial Officer Susan Li. Potential income sources include business tools, subscriptions and commercial transactions completed through AI agents. Zuckerberg said Muse could become more valuable as more people and businesses join its network.
The company also plans to redirect Reality Labs investment toward AI, aiming to narrow the unit’s losses next year. However, privacy concerns and legal challenges could complicate the strategy as AI agents gain wider access to user information.
Meta’s latest results offer investors stronger revenue growth, but the long-term test remains whether Muse can generate sustainable returns from its costly expansion.
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