Nvidia Picks Up $3B Stock In Meta's Equity Offering, Will Help Improve Muse AI Platform

• Meta said earlier that Nvidia, AMD, and Broadcom had agreed to buy as much as $5 billion of the common shares in aggregate.
• In February, Meta and Nvidia announced a multi-year partnership covering AI GPUs, CPUs and networking technology.
• Retail sentiment was ‘bullish’ for META and NVDA on Tuesday.

Nvidia Corp (NVDA) said early Tuesday that it is investing $3 billion in Meta Platforms’ (META) equity offering and will partner with the social media giant to improve its Muse AI agentic platform.

Meta announced a massive $97.5 billion equity offering on Monday and said later in the day that it sold $12.5 billion of preferred shares at $50 apiece and $25 billion of common stock at $625 per share.

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The offer includes about $60 billion in an at-the-market share sale program, including the company’s planned Class C nonvoting shares.

Meta said earlier that Nvidia, Advanced Micro Devices (AMD), and Broadcom (AVGO) had agreed to buy as much as $5 billion of the common shares in aggregate. Meta intends to use the proceeds to support its investment in AI infrastructure and its consumer AI tools.

NVDA stock was down 0.6% in overnight trading ahead of Tuesday, while META shares were flat. Large-cap tech names were mixed following Anthropic’s IPO filing, although some memory stocks eked out gains in overnight and Asian trading.

Nvidia-Meta Expand Partnership

“NVIDIA and Meta today announced they will partner to expand their work on Muse and the Muse family of models to improve inference and training performance, reflecting popular demand for useful AI agents,” the AI chipmaker said in a press release.

The two will work to optimize workflows to maximize Muse’s performance and improve total cost of ownership, and consider additional collaboration opportunities, specifically around Nvidia’s OpenShell Reference Architecture.

In February, Meta and Nvidia announced a multi-year partnership covering millions of AI GPUs, CPUs and networking technology. They did not reveal the financial details for the deal.

AI Leaders Issue Equity To Fund Development

Meta’s equity offering follows similar ones by Alphabet (GOOGL) and Intel Corp (INTC) earlier this year – rare moves by the cash-rich companies.

During its earnings report last week, Meta announced a new class of nonvoting stock that could ultimately fund acquisitions and other expenses. The so-called Class C stock will be distributed to existing investors through a stock dividend and will start trading in January 2027.

Retail Sentiment For META, NVDA

On Stocktwits, retail sentiment for META shifted to ‘bullish’ on Tuesday, down from ‘extremely bullish’ the previous day, while sentiment for NVDA remained ‘bullish.’

Trader views on Meta’s offering were mixed and several were holding off for quarterly reports from hyperscalers Alphabet (GOOGL), Microsoft (MSFT) and Amazon (AMZN) later this week to form a position on the stock.

META shares are down 4.2% year to date, while the NVDA stock has gained 16%.

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