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

Nvidia is investing $3 billion in Meta, and the timing is doing a lot of work here. The chip maker is backing one of its biggest customers as Meta runs the largest equity raise in its history, while both companies deepen their work on Meta’s A.I. agent Muse.

The deal is broad, but the simple version is this: Nvidia will buy Meta shares once closing conditions are met, and Meta plans to keep stuffing more Nvidia hardware into its data centers. That includes the next wave of Vera Rubin chips, Vera processors, Spectrum-X networking and BlueField-4. The companies did not say how much of any of it Meta will buy.

Muse sits at the center of the logic. Meta says the agent can book travel, fill in forms and shop, and it has already passed 10 million downloads in 40 days. Zuckerberg has called it the route to “personal superintelligence,” while Nvidia’s Jensen Huang says A.I. agents mark “a new computing paradigm.” The companies also want to make training and running Muse models faster and cheaper, and are talking about working together on Nvidia’s OpenShell architecture and Sentry monitoring tool for safer A.I. agents.

Meta clearly needs the cash. It plans to raise up to $97.5 billion in fresh equity in several steps, including $25 billion in common stock, about $12.5 billion in mandatory convertible preferred stock, and up to $60 billion more through an at-the-market program starting in the first quarter of 2027. That comes as Meta expects to spend $135 billion to $145 billion in 2026, mostly on data centers, after free cash flow turned negative in the third quarter for the first time in more than a decade.

And this is where the whole thing starts to look a bit circular. Nvidia puts money into Meta, Meta spends on Nvidia hardware, and the cash can end up back where it began through chip orders. Analysts and the IMF have already raised eyebrows at that kind of financing, and Meta’s shares fell almost 2 percent on Monday before the raise was announced.