Nvidia commits $3 billion and AMD $1 billion to Meta's upsized AI equity raise

NVDA said on Tuesday it will invest $3 billion in META's equity offering, as part of an expanded partnership to improve training and inference for Meta's Muse AI models. Meta plans to deploy more Nvidia infrastructure in its data centers, including Vera Rubin systems and Vera CPUs to run its AI agents. AMD followed with its own announcement that it will put $1 billion into the same offering, bringing the two chipmakers' combined commitment to $4 billion.

The commitments land in a raise that has already grown. Meta launched about $35 billion of underwritten equity offerings on Monday and said it planned another $60 billion through a later program. It then upsized the common stock portion to $25 billion from $22.5 billion and priced it at $625 a share, with depositary shares at $50 each, so the current raise can now bring in up to $37.5 billion. Meta had said Nvidia, AMD and AVGO were interested in buying up to $5 billion of its shares; that interest was non-binding, and Broadcom has not announced an amount.

For the chipmakers, the stakes sit alongside supply deals. AMD said its Helios rack systems are already installed and being tested at Meta under a February agreement covering up to 6 gigawatts of AMD GPUs. Nvidia has been building stakes across the AI industry and has taken part in 121 investment rounds this year, up from 13 in 2022, according to Dealroom. Nvidia and Meta shares were flat in premarket trading after the news.

What to watch: whether Broadcom converts its interest into a firm commitment, how the offering settles on October 29, and how investors weigh the circular quality of suppliers buying equity in a customer that funds purchases of their chips. Meta's capex commentary over the coming quarters will show how quickly the new capital is put to work.