Investment

Nvidia Puts $3 Billion Into Meta’s Record Share Sale

co-produced by AI27. October 2026, 18:00

The chip supplier is buying into its best customer: Nvidia is investing $3 billion (about €2.7 billion) in Meta as part of the largest equity raise in the Facebook parent’s history. At the same time, the two companies are expanding their work on Meta’s A.I. agent Muse, Nvidia announced. Meta, in turn, plans to put even more Nvidia hardware into its data centers.

What the Deal Covers

The agreement has several parts:

Investment: Nvidia will buy $3 billion of Meta shares once customary closing conditions are met.
Hardware: Meta intends to deploy more Nvidia technology, including the upcoming Vera Rubin chips, Vera processors, Spectrum-X networking and BlueField-4. The companies did not disclose quantities.
Muse models: Together, they want to make training and running Meta’s Muse models faster and cheaper.
Safety: The two are considering working together on Nvidia’s OpenShell, an architecture for deploying A.I. agents safely, and the monitoring tool Sentry.

“Muse is how we bring personal superintelligence to everyone,” said Mark Zuckerberg, Meta’s chief executive. Jensen Huang, Nvidia’s chief executive, described A.I. agents as “a new computing paradigm.”

Meta’s Hunger for Cash

Behind the deal is Meta’s enormous need for money. The company plans to raise up to $97.5 billion (about €87 billion) in fresh equity in several steps:

Common stock: $25 billion at $625 a share, sold through forward agreements, with the cash arriving by November 2027 at the latest.
Mandatory convertible preferred stock: About $12.5 billion in preferred shares that will automatically convert into common stock in 2029.
Ongoing share sales: Starting in the first quarter of 2027, an at-the-market program is set to bring in up to $60 billion through new, non-voting Class C shares.

That would surpass even Alphabet, which sold $84.75 billion of stock in June. Besides Nvidia, AMD and Broadcom have also indicated interest in buying up to $5 billion of shares combined, according to Meta.

Meta’s latest quarterly results show why it needs the money: The company plans to spend $135 billion to $145 billion in 2026, mostly on data centers. In the third quarter, its free cash flow turned negative for the first time in more than a decade. At the end of September, about $82 billion in cash stood against about $81 billion in long-term debt.

Muse Eats Compute

One of the biggest drivers is Muse. The personal A.I. agent, which can book travel, fill in forms and shop, has been available since September and reached more than 10 million downloads in 40 days. Meta has also introduced its own frontier model, Muse Wonder. Mr. Zuckerberg himself has said that Muse requires a great deal of computing power. The launch did not go entirely smoothly: There was a security flaw in the Mac app, and Amazon blocked the agent from shopping on its platform.

Money Going in Circles

Chip suppliers buying shares in one of their biggest customers feeds the debate about so-called circular financing in the A.I. industry: Nvidia provides money that flows back to Nvidia through chip orders. Nvidia has recently taken stakes in a whole series of customers and start-ups. The International Monetary Fund also recently warned of a debt spiral in the A.I. build-out.

Analysts at William Blair expect investors “to continue to question the financing and potential for future capital raises,” according to Reuters. At the same time, they see the financing as a sign that Meta believes in long-term returns from A.I. Meta’s shares fell almost 2 percent on Monday, before the raise was announced.