Nvidia and AMD to put $4 billion into Meta’s giant AI share sale

What happened

On Tuesday, October 27, Nvidia announced a $3 billion investment in Meta's equity offering, and AMD followed with $1 billion of its own, CNBC reported. In a joint statement, Nvidia and Meta said they would work together to speed up training and inference for Meta's Muse family of AI models. Meta plans to roll out more Nvidia Vera Rubin systems and Vera CPUs, plus Nvidia networking gear. AMD said its Helios rack systems are installed and being tested at Meta, and that its EPYC processors run the computing behind Muse, Meta's personal AI agent. On the day, CNBC said AMD shares rose about 3%, Nvidia was flat and Meta slipped 1%.

What it means

The investments plug into the fundraising Meta unveiled on Monday. According to CNBC, Meta plans to raise $95 billion in total, beginning with $35 billion of underwritten share sales and adding $60 billion more later. Investing.com reported that Meta has since upsized its common stock sale to $25 billion from $22.5 billion, which together with a depositary share offering could bring in up to $37.5 billion. It priced the common shares at $625 each. Meta's Monday announcement had already flagged that Nvidia, AMD and Broadcom were interested in buying up to $5 billion of the stock.

This is an unusual circle of money. Meta is one of the largest buyers of AI chips, and now two of its chip suppliers are buying a piece of Meta. Some of the cash Meta raises could flow back to them as it builds data centers. For the chipmakers, the stake helps lock in a huge customer. For Meta, it signals that its most important suppliers back its spending plans at a time when it is asking investors for a very large sum.

Both deals also lean on Muse, Meta's AI agent, an app that does tasks on a user's behalf. According to Investing.com, the Muse agent app became one of the most downloaded apps within a week of its launch last month. AMD said Meta has deployed millions of its EPYC processors over several generations, uses AMD Instinct graphics chips in production for training and recommendation systems, and will deploy a custom Instinct chip built for its workloads. Broader Helios deployment, AMD said, is still a future step.

The move fits a wider pattern. CNBC, citing Dealroom, said Nvidia has joined 121 funding rounds so far this year, up from 13 in 2022, with stakes in OpenAI, Anthropic, Intel and xAI. AMD has taken part in 25 rounds in 2026, against two in 2022, and in July agreed to invest up to $5 billion in Anthropic. Chipmakers are increasingly using their strong balance sheets to support the customers that buy their products.

The bull case

For Nvidia and AMD, a few billion dollars buys a closer seat at one of the world's biggest AI spenders, with Meta committing to roll out more of their hardware. AMD gets a showcase for Helios, its rack-scale system, and a custom chip deal. For Meta, support from key suppliers could help it sell a very large offering, and early Muse demand suggests its AI spending is finding users.

The bear case

Meta is issuing a large amount of new stock, which spreads future profits across more shares, and the shares slipped on the news. Suppliers investing in a customer that then buys their chips can make demand look stronger than it would be on its own. If AI spending cools, Nvidia and AMD could face both weaker sales and a loss on their stakes. AMD's Helios systems are still only in testing.