• Meta established a new class of stock to ensure Mark Zuckerberg stayed as CEO.
• The stock class will "continue the founder-led model that has driven the company," Meta said in its third-quarter earnings.
• Zuckerberg has taken a leading position in Meta's AI era.

Meta's board wants Mark Zuckerberg to stick around.

The company announced a new category of non-voting Class C stock in its third-quarter earnings report. It listed several reasons for creating the new class — one of which is to keep the CEO in control.

A Special Committee established by Meta's board determined that Zuckerberg was the best fit to lead the company into its future, and highlighted the CEO's creative vision and management abilities.

"The creation of the Class C common stock will continue the founder-led model that has driven the company's success since its inception," Meta said.

The stock class will also provide Meta the ability to finance its growth, the earnings report said. Meta is spending big on AI and the data centers needed to power it. The company reported $34.91 billion in third-quarter capital expenditures.

Meta's press release said the distribution would effectively amount to a two-for-one stock split for existing shareholders. Susan Li, Meta's chief financial officer, said that the stock will be distributed to existing shareholders.

Other tech companies have issued stock to access new capital without diluting their CEO's voting power. Google performed a stock split in 2012 for a similar reason. Semafor was first to report the new stock class.

Zuckerberg has long been the face of Meta. He's strengthened his leadership through the AI boom, going "startup mode" and getting hands-on with the tech. The company's AI team set up their desks around where Zuckerberg sits.

The success of Muse, Meta's AI agent, has raised the profile of another Meta executive: Alexandr Wang. The chief AI officer has joined Zuckerberg for podcasts and spoken onstage at keynotes.

A Financial Times profile last week touted Wang as a "potential successor to Zuckerberg." It's clear the board wants Zuckerberg there for the long haul.

• Meta's AI agent, Muse, is unprofitable due to "very high compute costs," CEO Mark Zuckerberg says.
• Meanwhile, Meta expects Reality Labs, its AI glasses division, to lose $15 billion next year.
• The social media giant has a plan to fix that.

Meta says some of its biggest cash incinerators could finally start turning profits.

The social media giant, which generated over 97% of its quarterly revenue from ads, has faced persistent questions from investors about the lack of profitability in its AI and hardware initiatives.

Meta CEO Mark Zuckerberg addressed those concerns head-on during its third-quarter earnings call on Wednesday.

Zuckerberg said that Muse, the AI assistant it launched last month, is unprofitable since it's "very compute intensive to run." Meta expects to start turning that around next year by massively improving Muse's efficiency.

"If compute efficiency continues improving quickly for another few years, which we think is highly likely, then Muse will be highly profitable over multiple years," he said.

Meta plans to make money from Muse by taking a small transaction fee off of purchases it drives, Zuckerberg said at Meta's Connect conference last month.

Zuckerberg added that Muse, which launched only in the US and Canada, wasn't launched globally due in part to the amount of compute it requires. (Meta's North American users are generally its most lucrative.)

Zuckerberg also struck a positive note about its cash-hemorrhaging Reality Labs division, which makes products like Meta Ray-Bans and virtual reality glasses.

Meta expects Reality Labs to narrow its losses to about $15 billion in 2027, down from the $18 to $19 billion it expects to lose this year. The division should start trending toward profitability next year, as Meta's AI systems make it more useful, Zuckerberg said.

"I continue to believe that the path to delivering holographic experience, of bringing together the physical and digital worlds and everyday glasses, will come through VR first," Zuckerberg said.

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• Meta spent $34.91 billion in capital expenditures in its third quarter.
• The company is spending big on data centers and other infrastructure for its AI development.
• Meta predicted $135-145 billion in capex for 2026, aligning with analyst expectations.

Meta is making it rain for AI.

The company spent $34.91 billion in capital expenditures during the third quarter of 2026. That's up from the second quarter's sum, $31.08 billion.

For the year 2026, Meta said it expects to spend between $135-145 billion in capital expenditures, narrowed from its prediction of $130-145 billion last quarter.

Meta's forecast includes the yearly capex prediction that analysts expected: $139.79 billion.

As Meta bets big on AI, it is investing heavily in its development. It has built massive, costly data centers and spent big on computing power.

The spending uptick was expected. On the "Cheeky Pint" podcast earlier this month, CEO Mark Zuckerberg recounted early conversations about the investment — and said he'd bet up to $200 billion on AI, before he knew the models would work.

Investors haven't loved Meta's massive capex forecasts in past quarters. The stock tumbled almost 10% last quarter after earnings per share missed Wall Street estimates, and sank 6% the quarter before on raised capex guidance.

This quarter, Meta has a new hero product: Muse.

The AI assistant has reached over 2 million daily users and 3 million downloads. It quickly scaled the App Store. Muse users told Business Insider they chatted with it to help plan trips and ace exams.

The energy around the company is ebullient, as Alexandr Wang, Meta's chief AI officer, continues to post memes of Muse's squishy-looking mascot.

At Meta's Connect keynote event in September, Zuckerberg said Muse "has a novel business model."

"We believe that Muse will make you money, and we're standing behind this by making Muse free for a huge number of tokens with the expectation that over time, we will profit by taking a small fee from transactions," he said.

Muse could help justify the capex guidance for some investors. The stock was trading up 4.12% after-hours at the time of publication.