TL;DR: Nvidia and AMD invest in Meta: the chipmakers will put a combined $4 billion into Meta, buying into the record equity raise Meta launched on October 26 to pay for its AI build-out. Nvidia is putting in $3 billion and AMD $1 billion, and both are deepening hardware partnerships around Meta’s Muse AI agent. By Tuesday, Reuters reported Meta had raised the planned size of the offering to $97.5 billion, with common shares priced at $625. Analysts are already asking what it means when chip suppliers help finance one of their biggest customers.
The news that Nvidia and AMD will invest in Meta came a day after Meta announced one of the largest equity financing plans ever attempted by a tech company. It follows Anthropic’s IPO filing in a busy stretch for AI money. Here’s what was announced, the numbers so far, and why the deal matters.
What Nvidia and AMD announced
According to CNBC, Nvidia said on Tuesday, October 27, that it would invest $3 billion in Meta’s equity offering, and AMD said it would invest $1 billion. Meta’s own announcement a day earlier had said Nvidia, AMD and Broadcom were interested in buying up to $5 billion in shares between them.
Both investments come with deeper technical ties:
- Nvidia: CNBC reports that Meta will expand its deployment of Nvidia’s Vera Rubin systems and Vera CPUs, and that the two companies will deepen their partnership on Muse, the AI agent Meta launched last month. Axios reports Nvidia said the companies will “partner to expand their work on Muse and the Muse family of models to improve inference and training performance.”
- AMD: In its press release, AMD said its first Helios rack-scale systems are installed and being tested at Meta, that AMD EPYC processors power the computing environments behind Muse, and that Meta will deploy a custom AMD Instinct GPU tuned for its workloads. AMD also said it delivered day-one support for Meta’s Muse Spark Open and Muse Glimmer models.
Nvidia CEO Jensen Huang said in a statement quoted by CNBC and Axios: “AI agents represent a new computing paradigm — software that understands our goals, reasons, uses tools and gets work done on our behalf.” Meta CEO Mark Zuckerberg said: “We’re excited to keep working with NVIDIA to deliver the best personal agents and frontier models for billions of people.”
AMD CEO Lisa Su said the companies are “building and deploying infrastructure at gigawatt scale and shaping future generations of silicon, software and systems to enable Meta’s most ambitious superintelligence models and services.”
How big is Meta’s stock offering?
Meta’s October 26 announcement laid out a financing plan in two parts. A day later, Reuters reported that the common stock portion had grown.
| Piece of the plan | Announced Oct 26 | Update reported Oct 27 |
|---|---|---|
| Class A common stock (via forward sale agreements) | About $22.5 billion | $25 billion, priced at $625 per share |
| Mandatory convertible preferred (depositary shares) | About $12.5 billion (250 million depositary shares) | About $12.5 billion at $50 per depositary share |
| At-the-market (ATM) program | About $60 billion | Up to $60 billion, expected after Class C shares start trading in Q1 2027 |
| Total | About $95 billion | $97.5 billion |
The ATM program lets Meta sell shares gradually at market prices rather than all at once. Meta said that program would launch once its previously announced non-voting Class C common stock begins trading. Reuters reported that Meta plans to issue the Class C shares in January 2027, effectively a two-for-one split.
Why Meta is raising so much money
Meta says the money supports its investment in AI infrastructure and what it calls “personal superintelligence.” In its announcement, the company said it expects $135 billion to $145 billion in capital expenditures in 2026, and that it plans to fund this through a mix of operating cash flow, investment-grade debt, strategic partnerships and equity.
Meta said it generated $97 billion of operating cash flow in the first three quarters of 2026 and had about $82 billion in cash, cash equivalents and marketable securities at the end of the period. But the spending is catching up with it. Reuters reported that Meta posted a $2.12 billion cash burn in the third quarter, its first negative free cash flow in more than a decade, and that it had $80.92 billion in long-term debt as of September 30.
The raise also lands as Meta pushes its Muse family of models, which we’ve covered from the Muse Wonder frontier model launch to the open-weight Muse Spark Open. Reuters noted that the early popularity of the Muse agent and the new models have helped partly justify the spending.
The “circular money” question
The obvious catch: Nvidia and AMD sell Meta the chips it’s buying with this money. Reuters wrote that the chipmakers’ interest “adds to concerns about an increasingly circular flow of capital in the AI industry, as chip suppliers help finance the expansion of one of their biggest customers.”
That pattern isn’t new. CNBC reports Nvidia has invested in OpenAI, Anthropic, Intel and xAI, and has taken part in 121 investment rounds so far this year according to Dealroom, up from 13 in 2022. AMD said in July it would make an equity investment of up to $5 billion in Anthropic, and has been involved in 25 funding rounds in 2026, CNBC says.
Wall Street worries about AI financing aren’t new either. Earlier this month, nervousness about the industry’s debt load helped push Nvidia’s stock lower. Meta’s move is part of a broader shift from paying for AI with cash to tapping debt and equity markets. Reuters noted that Alphabet increased its own equity offerings to $84.75 billion in June.
What analysts are saying
William Blair analysts, quoted by Reuters, said: “We expect investors to continue to question the financing and potential for future capital raises.” They added that the financing “reinforces both Meta’s confidence in the long-term returns from AI investment and the increasingly capital-intensive nature of pursuing that opportunity.”
For scale, CNBC cited a Goldman Sachs estimate that AI-related capital spending could total about $7.6 trillion from 2026 through 2031, across compute, data centers and power.
How the market reacted
The share moves so far:
- Meta shares closed down nearly 2% at $630.56 on Monday after the plan was announced, Reuters reported.
- On Tuesday, CNBC reported AMD was up 3%, Nvidia was flat and Meta was down 1%.
What it means
For Meta, the $4 billion from Nvidia and AMD is a small slice of a $97.5 billion plan. The bigger signal is strategic: its two most important AI chip suppliers now hold equity in the company, alongside commitments to build future hardware around Meta’s workloads. AMD says the collaboration is informing its future Instinct MI500 series GPUs and next-generation rack-scale systems.
For investors, the deal adds to an open question hanging over AI in 2026: how much of the boom is funded by real end-customer demand, and how much by suppliers, customers and partners investing in each other. Meta’s next test is the ATM program in 2027, which will show how much appetite there is for tens of billions more in Meta stock.
FAQ
How much are Nvidia and AMD investing in Meta?
Nvidia is investing $3 billion and AMD $1 billion, a combined $4 billion, in Meta’s equity offering, according to CNBC.
How much is Meta raising in total?
Meta announced a plan of about $95 billion on October 26. Reuters reported on October 27 that the planned total had risen to $97.5 billion after the common stock portion grew to $25 billion.
What will Meta spend the money on?
Meta says the money supports its AI infrastructure and “personal superintelligence” plans. It expects $135 billion to $145 billion in capital spending in 2026.
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