Nvidia to Invest $3 Billion in Meta Stock Offering as Meta's Total Raise Grows to $97.5 Billion

Nvidia will invest $3 billion in Meta Platforms' equity offering, the two companies said Tuesday, Oct. 27. The deal comes a day after Meta announced it would raise $95 billion to fund AI infrastructure.

Meta has since upsized the plan to $97.5 billion, the largest fundraising in its history.

How the raise is structured

Meta announced the offering Monday, Oct. 26. The first phase was about $35 billion in underwritten public offerings: $22.5 billion of Class A common stock and about $12.5 billion of depositary shares representing mandatory convertible preferred stock.

The company then raised the common stock portion to $25 billion, bringing the first phase to roughly $37.5 billion. The common shares are priced at $625 each. The preferred depositary shares are priced at $50.

The second phase is an at-the-market program of up to $60 billion. It is tied to a newly created non-voting Class C common stock, which Meta expects to begin trading in the first quarter of 2027. That money is not available today.

Meta's announcement said Nvidia, Advanced Micro Devices and Broadcom were interested in buying up to $5 billion of shares. Nvidia's $3 billion is part of that picture.

What Nvidia gets beyond shares

Nvidia said Meta will expand its deployment of Vera Rubin systems and Vera CPUs. Meta also plans to use Nvidia's Spectrum-X networking and BlueField-4 hardware.

The companies will work more closely on Muse, the Meta AI agent launched last month, and on the Muse family of models. They also said they may evaluate Nvidia's OpenShell framework for rolling out software safely, and Sentry for monitoring AI agents.

"AI agents represent a new computing paradigm — software that understands our goals, reasons, uses tools and gets work done on our behalf," Nvidia CEO Jensen Huang said in a statement.

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." Meta has described Muse as its path to bringing personal superintelligence to everyone.

The spending behind it

Meta expects 2026 capital expenditures, including principal payments on finance leases, of $135 billion to $145 billion. Most of that goes to AI infrastructure.

Meta's third-quarter free cash flow was negative $2.12 billion, according to TradingKey's analysis of the company's results. The same analysis says AI investment is driving advertising revenue, and that investors need to watch whether the heavy outlays keep translating into revenue growth.

No one in the announcement has put a dollar figure on the return Meta expects from the new capital. Zuckerberg's stated goal is personal agents and frontier models at global scale.

Nvidia's growing portfolio

The structure is straightforward. Nvidia sells the chips and networking gear that Meta buys. Nvidia will now also own Meta stock.

It is a familiar pattern for the chipmaker. Nvidia has taken stakes in OpenAI, Anthropic, Intel and xAI. According to Dealroom, Nvidia has taken part in 121 investment rounds so far this year, up from 13 in 2022.

One analysis of the deal notes that bringing suppliers in as strategic shareholders helps Meta lock in computing power supply, and that for Nvidia it turns a pure chip-sales relationship into a capital-and-technology one.

Market reaction

Pre-market indications were muted. Both stocks were flat in premarket trading Tuesday. One pre-market quote put Meta up 0.12% at $631.31 and Nvidia up 0.05% at $216.10. Those are indications only.

The $625 common offering price sits just under that pre-market level.

What comes next

The underwritten offerings are the first test of how much appetite there is for new Meta stock. The larger piece is the $60 billion at-the-market program, which cannot begin until the Class C shares start trading, expected in the first quarter of 2027.

Until then, the open question is how much of the first $37.5 billion goes into Nvidia-based infrastructure, and whether the AI spending keeps translating into revenue growth.