Nvidia commits $3 billion to Meta’s equity raise as Meta lifts its common stock sale to $25 billion

Nvidia said it will invest $3 billion in Meta’s equity offering as part of a wider partnership on Muse, Meta’s AI agents^1,2. Meta separately said it had upsized an offering of common stock to $25 billion from $22.5 billion⁶.

The two companies said they will expand their collaboration on Muse and the Muse family of models⁸. The agreement centres on Meta’s Muse AI agents, and Meta plans to deploy more Nvidia hardware⁷. The deal deepens the AI partnership between the two technology companies⁴.

The investment follows Meta’s plan, laid out on Monday, to raise up to $95 billion, with an initial raise of $35 billion⁵.

Why it matters to investors

Nvidia is investing in another of its customers². The company, which Jensen Huang has built into the dominant provider of artificial-intelligence chips, is taking a $3 billion share of Meta’s equity³. Meta, in turn, plans to deploy more Nvidia hardware⁷, so the investor is also a supplier to the company it is backing³.

The arrangement adds a supplier’s capital to Meta’s equity raise⁵. Coverage put the total size of Meta’s equity offering at $97.5 billion⁷, while Meta’s own plan described a raise of up to $95 billion⁵. The difference in reported totals has not been explained in the coverage so far.

Huang framed the partnership as a change in computing. ‘This changes how we use computers, from operating applications to working with intelligent agents,’ he said in a statement released by Nvidia⁸. The investment in the share offering is part of a bigger AI partnership between the two companies⁶, one that also covers the Muse family of models⁸.

What to watch

One question raised by the deal is whether other chip suppliers follow Nvidia in taking equity in their customers’ offerings; one analysis turned attention to Broadcom after the announcement³. Another is how much demand the upsized $25 billion common stock offering⁶ draws from investors beyond Nvidia.

Investors will also track how quickly Meta deploys the Nvidia hardware tied to the agreement⁷ and how the Muse collaboration develops⁸. The size of the full raise, whether $95 billion⁵ or $97.5 billion⁷, will show the final scale of the offering, which began with an initial raise of $35 billion⁵. The deal also tests how far the partnership between the two companies extends beyond the Muse agents⁴.