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Nvidia is putting $3 billion into Meta's stock offering as the two expand their AI partnership

The chipmaker's investment comes as Meta upsizes its common stock offering to $25 billion and plans to deploy more Nvidia infrastructure for its Muse AI agents.

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Why it matters: Meta is selling billions in new stock to fund AI infrastructure, and Nvidia, whose chips Meta plans to deploy more of, is putting in $3 billion.

For information only, not investment advice. Prices delayed.

Tickers: NVDA, META

Nvidia ($NVDA) will invest $3 billion in Meta's ($META) equity offering, the two companies said in a joint announcement that also expands their work on Meta's Muse family of AI models.

The planned check goes into a raise Meta just made bigger. In its pricing announcement, Meta said it upsized its common stock offering to $25.0 billion from $22.5 billion, at $625.00 a share. It also priced 250 million depositary shares tied to new convertible preferred stock at $50 apiece, for about $12.5 billion in net proceeds. Meta stock closed at $630.56, down 1.88%, and Nvidia at $216, up 2.39%, as of Oct 26, 4:00 PM ET.

Nvidia had company in line. When Meta launched the offering on Monday, it said Nvidia, AMD and Broadcom had indicated interest in buying up to $5.0 billion of the common stock combined, and that those indications weren't binding.

There's a loop in here, too. Meta is raising cash for AI infrastructure, and it intends to expand its deployment of Nvidia infrastructure, including Vera Rubin and Vera CPUs, for next-generation AI agents, the companies said. Nvidia CEO Jensen Huang put it this way:

NVIDIA and Meta are expanding our partnership to optimize the computing infrastructure end to end for capable, efficient and secure AI agents, so Muse can empower billions of people to achieve more and pursue greater ambitions.

Jensen Huang, Nvidia

The broader plan is bigger still: Meta plans an at-the-market stock program of about $60 billion once its new Class C shares start trading, and CNBC put the total raise at $95 billion before the upsize.

Sources

  1. NVIDIA and Meta to Expand Collaboration on Muse and Muse Family of Models Amid Robust Growth, NVIDIA
  2. Meta Announces Pricing of Offering of Depositary Shares Representing Series A Mandatory Convertible Preferred Stock and Offering of Class A Common Stock in Connection with Forward Sale Agreements, Meta Platforms, Inc.
  3. Meta Announces Launch of Offering of Depositary Shares Representing Series A Mandatory Convertible Preferred Stock and Offering of Class A Common Stock in Connection with Forward Sale Agreements, Meta Platforms, Inc.
  4. Meta announces $95 billion stock offering to fund AI expansion, CNBC

Tags: ai · big-tech · semiconductors