Nvidia to invest $3 billion in Meta, expand partnership on Muse

AI chip heavyweight Nvidia (NVDA) said it would invest $3 billion in Meta (META) after the social media giant announced plans to raise $95 billion for its infrastructure build-out.

Nvidia said that it will partner with Meta “to expand their work on Muse and the Muse family of models to improve inference and training performance.”

“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.

On Monday, Meta laid out a plan to raise up to $95 billion, with an initial $35 billion raise in common and preferred stock to fund its aggressive AI infrastructure build-out. Nvidia committed to invest $3 billion in Meta’s equity offering.

The social media giant also revealed that its main chip suppliers, Nvidia, AMD (AMD), and Broadcom (AVGO), expressed interest in purchasing up to $5 billion in aggregate of those shares.

The initial raise includes about $22.5 billion in Class A common stock and $12.5 billion in Series A mandatory convertible preferred stock.

Meta said the capital raised will support continued momentum across its “core business and emerging AI opportunities.”

Those initiatives include its family of apps, AI agent Muse, and infrastructure build-out, among others.

Meta has been aggressively building out compute capacity and advancing its AI capabilities, with the recent launch of Muse, which has become a major consumer-facing hit.

Ines Ferre is a Senior Business Reporter for Yahoo Finance.