Meta’s AI Cash Plan Also Shields Zuckerberg’s Grip on Power
Meta’s AI Cash Plan Also Shields Zuckerberg’s Grip on Power
The pressure began in July, when Zuckerberg entered negotiations with Meta’s board over the financial consequences of California’s proposed Proposition 40. The measure would impose a one-time 5% levy on the holdings of billionaires who lived in the state as of Jan. 1, 2026; Meta’s filings indicated that paying such a bill through sales of Zuckerberg’s existing supervoting stock could reduce his voting power to 53%.
The talks grew more combustible in September. At a Sept. 9 dinner, Zuckerberg reportedly told directors that, absent a deal, he would list his Palo Alto home within 96 hours—an ultimatum that put a potential public split between Meta and its founder on the table. Another account described the negotiations as a fight over “power and money,” with board members considering resignations and Zuckerberg raising the prospect of leaving California.
The board’s special committee ultimately judged it “critically important” that Zuckerberg continue running Meta near its Silicon Valley headquarters and its Superintelligence Labs. In return, he agreed to remain in California, or another jurisdiction housing Meta’s headquarters, for eight years except in unforeseen circumstances.
On Wednesday, Meta unveiled the mechanism: a new, non-voting Class C share class. Existing shareholders would receive the shares in what Meta described as effectively a two-for-one split, while the company gains stock it can use without eroding Zuckerberg’s voting authority. The company said the arrangement would preserve the “founder-led model that has driven the company’s success since its inception.”
Meta’s stated rationale extends beyond the tax fight. It expects $135 billion to $145 billion in annual capital spending as it builds AI infrastructure, pursues acquisitions and compensates staff; CFO Susan Li said the shares would “expand our funding tools” for an AI-driven surge in the business. For Meta, the share class is financing. For Zuckerberg, it is also a firewall around the control that makes him indispensable to the board.
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