Nvidia to invest $3B in Meta's equity offering and deepen Muse AI partnership; Meta upsizes raise to $97.5B
What happened
Nvidia said late Monday / early Tuesday it will invest $3 billion in Meta Platforms' equity offering, as the two companies deepen their partnership on Meta's Muse AI assistant and related AI models. Meta will expand deployment of Nvidia infrastructure — including Vera Rubin and Vera CPUs and Nvidia networking — for next-generation AI agents, and the companies are considering further collaboration on agent-behavior monitoring (Nvidia's OpenShell/Sentry tools). Separately on Tuesday, Meta increased its largest-ever equity fundraising to $97.5 billion, upsizing the common-stock tranche announced Monday from $22.5 billion to $25 billion at $625 per share, alongside 250 million depositary shares at $50 each. Meta has launched about $35 billion in public offerings and plans a further up-to-$60 billion at-the-market program after its new non-voting Class C shares begin trading, expected in Q1 2027. Reuters reports the raise has drawn interest of up to $5 billion in total from Nvidia, AMD and Broadcom for Class A shares. Meta shares fell about 1.4% in morning trading Tuesday; Nvidia was roughly flat to modestly higher in premarket trading.
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Start your free 14-day trialWho’s affected
- Meta Platforms (META): directly affected — upsized $97.5B raise means dilution, but also a funded AI buildout and a deeper Nvidia partnership; shares slipped ~1.4% Tuesday morning. Nvidia (NVDA): $3B investment plus expanded Muse deployment locks in a marquee customer and defends against Broadcom custom-chip encroachment; shares roughly flat to modestly higher premarket. Broadcom (AVGO) and AMD (AMD): also indicated interest in Meta's offering (up to $5B combined with Nvidia)
- Broadcom rose ~1.2% premarket, but the Nvidia deal underscores competition for Meta's AI wallet. AI infrastructure / semiconductor complex more broadly: reinforces the circular-capital narrative that has driven AI-valuation scrutiny.