Nvidia to invest $3 billion in Meta’s AI stock offering

Nvidia ↗ 0.90% said Tuesday it will buy $3 billion of the stock Meta Platforms ↘ 1.64% is selling to fund its AI buildout, according to Axios. The two companies are also expanding their work on Meta's Muse agent platform. The deal turns the world's most valuable chipmaker from a supplier into a shareholder of one of its biggest customers. Meta announced the fundraising on Monday, and Reuters reported that Nvidia's money will go into Meta's equity offering.axios.com+1

Muse partnership expands

Nvidia said in a statement that the companies will "partner to expand their work on Muse and the Muse family of models to improve inference and training performance," Axios reported. Meta plans to put more Nvidia infrastructure in its data centers, including Vera Rubin systems and Vera CPUs for next-generation AI agents, The Wall Street Journal reported. It will also deploy Nvidia networking technology, Investing.com said. The companies may also work together on Nvidia's OpenShell framework, which includes a tool called Sentry for monitoring how AI agents behave, The Economic Times reported. Muse, known internally as Hatch, is central to Mark Zuckerberg's plan to bring "personal superintelligence" to Meta's users.uk.finance.yahoo.com+3

"We're excited to keep working with (Nvidia) to deliver the best personal agents and frontier models for billions of people," Zuckerberg said. Nvidia CEO Jensen Huang said AI agents "represent a new computing paradigm — software that understands our goals, reasons, uses tools and gets work done on our behalf," according to Axios.axios.com

A record equity raise

On Monday, Meta said it would raise up to $95 billion. The plan started with about $35 billion in underwritten offerings of common stock and mandatory convertible preferred stock, followed by an at-the-market program of up to $60 billion, CNBC reported. The at-the-market sales are expected to use new nonvoting Class C shares, which should start trading in the first quarter of 2027, Business Insider reported. This is Meta's first share issuance since 2013, Yahoo Finance noted.cnbc.com+2

Meta later raised its common stock offering to $25 billion from $22.5 billion and priced it at $625 a share. The depositary shares were priced at $50 each, Investing.com reported. That brings the full package to about $97.5 billion, the largest fundraising in Meta's history, The Economic Times said.economictimes.indiatimes.com+1

Chipmakers as anchor investors

Nvidia, Advanced Micro Devices ↗ 5.45% and Broadcom ↗ 4.00% had together signaled non-binding interest in buying up to $5 billion of the Class A shares, Yahoo Finance reported. Nvidia's $3 billion commitment is the first firm allocation among them. Axios described the trend this way: "A multibillion-dollar Nvidia investment is becoming all but table stakes for serious AI players — a ready source of capital for their breakneck expansion and a guarantee for Nvidia of future revenue streams".finance.yahoo.com+1