Nvidia to commit $3 bln to Meta share offering as part of bigger AI partnership

 Nvidia said on Tuesday it will invest $3 billion in a recent equity offering by Meta Platforms, as part of an expanded partnership focusing on the Instagram owner’s Muse line of artificial intelligence models. The move follows Meta’s announcement that it plans to raise $95 billion to fund its AI infrastructure buildout.

The two companies said in a joint statement they will collaborate on improving inference and training performance in Meta’s Muse models. 

Meta said it plans to expand the deployment of Nvidia infrastructure in its data centers, including using Vera Rubin and Vera CPUs to power its AI agents. The company will also deploy Nvidia’s network technology. 

"We see the Meta equity financing helping remove part of the equity overhang," Mizuho analyst Lloyd Walmsley said in a note. "Investors feared they would have to wait until the Class C shares were established in Jan ’27. The pull-forward helps."

The collaboration comes after Meta’s Muse AI models, specifically its Muse agents, were positively received by users, with the Muse agent application becoming one of the most downloaded apps within a week of its launch. 

“NVIDIA and Meta are expanding our partnership to optimize the computing infrastructure end to end for capable, efficient and secure AI agents,” Nvidia CEO Jensen Huang said in a statement. 

Separately, Meta said it had upsized an offering of common stock to $25 billion from $22.5 billion. The offering, coupled with a depository share offering, will now raise up to $37.5 billion.

Meta said it had also priced the offerings at $625 a share for the common stock issuance and $50 per share for the depository share offering. 

The capital raise is aimed chiefly at funding the instagram owner’s AI infrastructure buildout. The company had on Monday said it was also planning a separate $60 billion non-voting share offering in 2027. 

Wells Fargo analysts said Meta’s equity raise “likely fulfills our expectation of a financing gap of $60-$80B for FY27.” They see the size and structure of the common, preferred and at-the-market offerings of Class C shares as “sufficient to fulfill funding needs in ‘27.”

The analysts expect the AI investment cycle to persist well beyond 2027, so future equity or debt offerings remain possible, but likely only with “greater visibility on Muse adoption/monetization and AI demand.” In their view, the raise “removes the financing dependence upon an increasingly volatile credit market.”

Vahid Karaahmetovic contributed to this report.