NVIDIA announced on October 27 that it will invest $3 billion to take part in Meta Platforms' latest equity financing, while the two companies expand cooperation in artificial intelligence infrastructure, with a focus on improving training and inference performance for Meta's Muse series of AI models.
Meta plans to further deploy NVIDIA's Vera Rubin computing platform, Vera CPU and networking technology in its data centers to support the expansion of its AI agent business.
At the same time, Meta raised the size of its common stock offering from $22.5 billion to $25 billion, and together with a $12.5 billion offering of depositary receipts for preferred stock, the total financing size rose to $37.5 billion.
The transaction means that while NVIDIA supplies AI computing equipment to Meta, it will also become an equity investor in the company.
NVIDIA Subscribe to $3 Billion of Meta Stock, Financing Size Raised by $2.5 Billion
According to announcements by the two companies on October 27, NVIDIA will invest $3 billion to participate in Meta's ongoing public equity financing.
Meta also announced that it raised the size of its Class A common stock offering from the original $22.5 billion to $25 billion, an increase of about 11.1%.
Together with the previously planned offering of about $12.5 billion in mandatory convertible preferred stock depositary receipts, the combined size of the two financings increased from $35 billion to $37.5 billion.
Meta has set the common stock offering price at $625 per share and the preferred stock depositary receipts at $50 each.
Based on the common stock offering price, NVIDIA's $3 billion investment corresponds to about 4.8 million Meta common shares, accounting for 12% of the common stock offering.
The financing is mainly intended for the AI infrastructure construction Meta is pushing forward.
The company previously estimated that 2026 capital expenditure would reach $135 billion to $145 billion, and continued expansion of data centers and computing power investment means it needs to raise more funds through external capital markets.
In addition, Meta said on Monday that it plans to raise about $60 billion in 2027 through an at-the-market offering program of non-voting Class C shares.
If both the $37.5 billion financing and next year's $60 billion plan are fully implemented, the base size of the two financings would reach $97.5 billion.
However, no formal agreement has yet been signed for next year's offering plan.
Both Sides Expand Muse Model Collaboration, Meta to Deploy Vera Rubin and Vera CPU
In addition to the equity investment, NVIDIA and Meta also announced an expansion of their technology cooperation, focusing on Meta's Muse series of AI models to improve model training and inference efficiency.
According to a joint statement, Meta plans to further expand the deployment of NVIDIA computing infrastructure in its data centers, including adopting the next-generation Vera Rubin computing platform and Vera CPU to provide computing power support for Muse AI agents.
At the same time, Meta will also deploy NVIDIA's networking technology to optimize data transmission and computing resource scheduling within its data centers.
The focus of the cooperation is end-to-end optimization of the computing infrastructure required for AI agents.
Compared with traditional chatbots, AI agents need to perform more continuous tasks, involving model inference, tool calls and multi-step operations, placing higher demands on computing efficiency, network performance and system stability.
NVIDIA Chief Executive Officer Jensen Huang said in the statement that the two sides are expanding cooperation to fully optimize the computing infrastructure required by AI agents and improve system capability, efficiency and security.
The cooperation is also related to the recent market performance of Meta's Muse product.
Reports said Meta's Muse agent received positive user feedback, and its app became one of the most downloaded applications within a week of launch.
As the user base expands, Meta needs to further increase inference computing power to meet the operating needs of AI agents.
NVIDIA Shifts from Chip Supplier to Equity Investor, Meta Accelerates AI Infrastructure Financing
The most notable change in this transaction is that the relationship between NVIDIA and Meta has further expanded from traditional chip procurement cooperation to equity investment and joint infrastructure development.
For NVIDIA, Meta is a major buyer of large-scale AI computing equipment.
By participating in Meta's equity financing, NVIDIA will further strengthen its partnership with this important customer, and Meta's expanded deployment of Vera Rubin and related networking equipment may also bring NVIDIA more long-term business opportunities.
For Meta, NVIDIA's $3 billion investment not only provides funding support for its AI expansion, but also aligns with the subsequent deployment of computing platforms.
As the scale of Muse agent applications grows, the company needs to continuously improve model training and inference capabilities, and related infrastructure spending will remain at a high level.
However, expanding equity financing also means Meta's existing shareholders face further dilution.
Although the company plans to use non-voting Class C shares to provide more room for future financing and maintain the existing voting rights structure, the new shares may still dilute the economic interests of common shareholders.
In terms of share prices, on October 26 NVIDIA rose 2.39% to close at $216, while Meta fell 1.88%.
The cooperation gives Meta new capital support and clarifies some of the core technologies to be used in the next phase of AI infrastructure expansion.
For investors, the key question ahead will be whether Meta can achieve returns matching its continuously increasing capital investment through commercial growth of the Muse agent and other AI products.
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