Nvidia announced plans to invest $3 billion in Meta Platforms, one of its biggest customers, as part of Meta's recently announced stock offering. The companies will expand their technical partnership on Muse, Meta's AI assistant, and the model family that powers it, aiming to improve both training and inference. Meta plans to deploy more Nvidia hardware, including Vera Rubin GPU systems, Vera CPUs and networking technology, while work on tools for securing and monitoring AI agents remains exploratory with nothing agreed. The article notes the announcement does not say how much new business Nvidia gains, since Meta was already a major customer and the engineers had been collaborating. The author sees the deal as Nvidia deploying cash while Meta needs capital, but says Nvidia's growth depends on continued AI spending, with last quarter's revenue at $96.2 billion and data center making up over 90% of sales.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Nvidia’s New $3 Billion AI Bet Is on One of Its Own Customers
Read the original on Yahoo Finance ↗
Keywords
NVDAMETAAI investmentartificial intelligence
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/27/2026 | 217.88 |
| Change that session | +0.87% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Nvidia Just Announced Plans to Pour Billions Into Meta's Muse
Meta plans to raise a total of $95 billion to support its AI spending, including a $35 billion underwritten public offering of Class A shares and a $60 billion sale of non-voting Class C shares starting early next year. Nvidia, AMD and Broadcom have expressed interest in buying up to $5 billion of Meta's Class A shares, with Nvidia contributing $3 billion. Meta also plans a 2-for-1 stock split on Jan. 19, 2027, issued as a stock dividend. The company expects 2026 capital expenditures of $135 billion to $145 billion, roughly double the $72.2 billion spent last year. Meta's shares are down 16% over the past year and trade at 21 times earnings, while Nvidia, with revenue and profit growth above 100%, trades below 28 times earnings; the author argues both are attractively priced despite the risk of slower AI spending.
- Meta's deal with AMD, Nvidia, Broadcom: Is circular financing a risk?
Madison and Speaker A discuss Meta's deal involving Broadcom, AMD and Nvidia, with Nvidia taking part in an equity issuance, and whether the circular nature of the financing is a concern. Madison notes that Mag 7 companies are mentioned throughout the S-1, and that circular funding has been common for these firms without causing major problems for investors before. The more interesting question is whether market patience is wearing thin for neocloud companies that need heavy funding to build infrastructure. Speaker A cites a Goldman report and Torsten Slok of Apollo saying AI spending will peak in the fourth quarter, along with Gartner's view that the downturn will be ugly when it comes, though not for everyone as large companies absorb smaller ones.
- Nvidia and Meta expand their AI partnership: What to know
Nvidia will invest $3 billion in Meta's equity offering, as Meta expanded its planned equity raise from 95 billion to 97 and a half billion. The common stock offering sold 25 billion, above the expected 22 and a half billion. The hosts note that although called a partnership, Nvidia is mostly selling chips to Meta, and the market may still read the deal as a bullish signal. They total recent financing deals, including a potential $100 billion Anthropic IPO, Meta's raise of roughly $100 billion, a $40 billion SpaceX GPU financing and a $63 billion Broadcom-Anthropic financing, at about $300 billion over 48 hours. They ask where the payoff for all this financing will come from.
- Nvidia to invest $3 billion in Meta, expand partnership on Muse
Nvidia said it will invest $3 billion in Meta after the company announced plans to raise up to $95 billion to fund its AI infrastructure build-out. The two companies will also expand their work on Muse and the Muse family of models to improve inference and training performance. Meta's initial raise of $35 billion includes about $22.5 billion in Class A common stock and $12.5 billion in Series A mandatory convertible preferred stock. Nvidia, AMD and Broadcom also expressed interest in buying up to $5 billion in aggregate of those shares.
- Nvidia investing $3 billion in Meta in Muse partnership
Nvidia will invest $3 billion in Meta as part of an expanded partnership that includes closer collaboration on the Muse agent platform, the companies said Tuesday. Nvidia will buy $3 billion of the $95 billion stock offering Meta announced Monday, and the two will work together to expand Muse and the Muse model family to improve inference and training performance. The article argues that multibillion-dollar Nvidia investments are becoming nearly essential for leading AI players, serving as both a capital source for their expansion and a guarantee of future revenue for Nvidia. Executives from both companies stressed the goal of delivering personal agents and frontier models for billions of people.
- Nvidia to invest $3 bln in Meta share offering as part of bigger AI partnership
Nvidia said it will invest $3 billion in Meta Platforms' recent equity offering as part of an expanded partnership focused on Meta's Muse AI models. The companies will work together to improve inference and training performance for Muse, while Meta plans to expand its use of Nvidia infrastructure in its data centers, including Vera Rubin and Vera CPUs to power AI agents, and deploy Nvidia networking technology. The move follows positive user response to Muse agents, with the Muse agent app becoming one of the most downloaded apps within a week of launch. Separately, Meta upsized its common stock offering to $25 billion from $22.5 billion, and with a depository share offering, the total could reach $37.5 billion, priced at $625 per common share and $50 per depository share. The raise is aimed mainly at funding Meta's AI infrastructure buildout, and Meta had also said it plans a separate $60 billion non-voting share offering in 2027.
Related markets
Latest news
- TSLA Stock Rises As Cybercabs Overtake Model Ys In Authorized Texas Robotaxi Fleet
Data from the Texas Department of Motor Vehicles shows Tesla's purpose-built Cybercab, a steering-wheel-free robotaxi, has become the majority of its authorized robotaxi fleet in Texas for the first time, with 544 of 1,051 vehicles. Model Y accounts for 507, a shift from early October when the registry showed 319 Cybercabs against 420 Model Ys. The data covers authorization only, not whether vehicles are operating or carrying riders. Cybercabs currently run only in Austin, while Tesla's robotaxis operate in Austin, Houston, Dallas and parts of Florida; Tesla said it is looking to add Cybercabs in Dallas next month. TSLA closed 4% higher on Tuesday but is down 9% year to date.
- Why Brown & Brown Stock Slumped by 5% Today
Brown & Brown's third-quarter revenue was almost $1.73 billion, up more than 7% from a year earlier but below the analyst average of $1.76 billion. GAAP net income rose almost 6% to $240 million, while adjusted earnings per share inched up nearly 2% to $1.07, short of the $1.09 consensus. The company cited a challenging rate environment of softening insurance premiums and said the Accession Risk Management Group acquisition, a $9.8 billion deal in 2025, helped results. Organic revenue, which excludes acquisitions, rose barely over 1% to $1.46 billion, pointing to weakness in the legacy business. The stock closed nearly 5% lower on Tuesday amid a broad investor sell-off.
- Penguin Solutions, Broadcom, FormFactor, Lattice Semiconductor, and AMD stocks trade up, what you need to know
Several chip and AI hardware stocks rose in the afternoon session after Broadcom reportedly secured $63 billion in bank financing to develop proprietary AI chips for Anthropic. Anthropic's IPO filing and Meta's equity offering were seen as signs that tech capital spending remains robust. PENG rose 7.8%, AVGO 3.8%, FORM 5.9%, LSCC 5.2% and AMD 5.3%. The article notes PENG had dropped 9.4% five days earlier after warnings that component shortages and cleanroom constraints would limit chip equipment makers through 2027, citing Lam Research. PENG has had 69 moves greater than 5% over the past year.
- Investing $1,000 in Each of These 3 Stocks 20 Years Ago Would Have Created a Portfolio Worth $674,000 Today
The article calculates that a $1,000 investment in each of Nvidia, Netflix and Amazon 20 years ago would be worth about $674,000 combined as of October 26. Nvidia's stake would be worth about $383,000, with most gains coming in the past couple of years as generative AI took off; the chipmaker's operating profit totaled nearly $200 billion over the past four quarters, its market cap is around $5.3 trillion, and it trades at 28 times trailing earnings. Netflix's stake would be worth more than $161,000, but its stock has fallen this year on concerns about slowing growth and is trading near its 52-week low. Amazon's stake would be worth about $130,000, and its operating income last year reached $80 billion, more than six times the $12 billion of three years earlier; the stock trades at around 20 times trailing earnings. The author argues these growth stocks can still be good buys today.
- Western Digital, Allegro MicroSystems, Amtech, and Teradyne shares skyrocket, what you need to know
Several semiconductor stocks rose sharply in the afternoon session after Broadcom obtained $63 billion in bank financing to develop proprietary AI chips for Anthropic. Alongside Anthropic's IPO filing and Meta's equity offering, the news signaled that tech capital spending remains robust. Among the gainers, Western Digital (WDC) rose 8.1%, Allegro MicroSystems (ALGM) gained 6.4%, Amtech (ASYS) added 5.1% and Teradyne (TER) climbed 5.6%. The article notes WDC has had 79 moves greater than 5% over the past year, and about 22 hours earlier the stock had gained 5.2% after Bank of America projected memory chip supplies would stay tight through 2028. Citing CNBC, the article says semiconductor fabrication equipment spending is projected to exceed $200 billion in 2027, as demand outpaces clean-room capacity and the availability of critical parts.
- Is Benz Mining (TSXV:BZ) Cheap On Icon Drilling Results Or Already Priced In?
Benz Mining (TSXV:BZ) reported extensive drilling results from the Icon gold camp at its Glenburgh Gold Project in Western Australia, confirming repeated stacked high-grade gold lenses. The share price rose 11.03% on the day and 10.47% over the past week, but fell 15.62% over 30 days; it is up 180.38% year to date and returned 205.52% over 12 months. A valuation narrative cited in the article puts fair value at CA$6.28 versus a last close of CA$4.43, implying 29% undervaluation. The article notes the market values Benz above C$1 billion without a current maiden Mineral Resource, and the stock trades at 26.4 times book value versus 2.2 times for the Canadian metals and mining group. Risks include less of the Exploration Target converting into compliant ounces than hoped or weaker project economics in future studies.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.