Nvidia (NASDAQ:NVDA) announced Tuesday that it will invest $3 billion in an equity offering by Meta Platforms (NASDAQ:META), alongside an expansion of the companies’ artificial intelligence partnership focused on Meta’s Muse AI models and supporting computing infrastructure.
The agreement includes collaboration on improving the training and inference performance of Meta’s Muse models, as well as plans to expand the use of Nvidia hardware and networking technology across Meta’s data centers.
Separately, Meta increased the size of its common stock offering from $22.5 billion to $25 billion, bringing the combined potential proceeds from its common stock and depository share offerings to $37.5 billion.
Nvidia and Meta Expand AI Infrastructure Collaboration
Under the expanded partnership, Nvidia and Meta will work together to improve the performance of Meta’s Muse artificial intelligence models, including the computing processes used for model training and inference.
Meta plans to increase its deployment of Nvidia infrastructure across its data centers, incorporating Vera Rubin and Vera CPUs to support its AI agents.
The company also intends to deploy Nvidia networking technology as part of the infrastructure expansion.
The collaboration covers both the hardware used to operate Meta’s AI systems and efforts to improve the efficiency and performance of its Muse models.
Nvidia CEO Jensen Huang described the objectives of the expanded relationship in a company statement.
“NVIDIA and Meta are expanding our partnership to optimize the computing infrastructure end to end for capable, efficient and secure AI agents,” Nvidia CEO Jensen Huang said in a statement.
Meta Expands Deployment Plans Following Muse AI Launch
The expanded agreement follows the launch of Meta’s Muse artificial intelligence models and associated AI agents.
According to the announcement, the Muse agent application received a positive response from users and became one of the most downloaded applications within a week of its release.
The companies intend to collaborate on further improvements to the training and inference capabilities of the Muse models.
Meta’s planned infrastructure expansion includes additional Nvidia computing systems and networking equipment intended to support the operation of its AI agents.
Meta Increases Common Stock Offering to $25 Billion
Alongside the partnership announcement, Meta disclosed that it had increased the size of its common stock offering to $25 billion from the previously announced $22.5 billion.
The company said the common stock offering, together with a separate depository share offering, could raise up to $37.5 billion.
Meta priced the common stock issuance at $625 per share, while the depository shares were priced at $50 each.
The company indicated that the proceeds are intended primarily to finance the expansion of its artificial intelligence infrastructure.
Nvidia’s planned $3 billion investment forms part of Meta’s recent equity offering.
Meta Also Plans $60 Billion Non-Voting Share Offering in 2027
Meta separately disclosed on Monday that it intends to undertake an additional $60 billion offering of non-voting shares in 2027.
The planned transaction is distinct from the current common stock and depository share offerings.
The company’s announced capital-raising activities are primarily directed towards funding its AI infrastructure expansion, including the computing resources required for its artificial intelligence models and agents.
The proposed 2027 offering remains a future financing plan, while the current offerings have been priced at $625 per common share and $50 per depository share.
Investors Assess Financing Plans and Expanded AI Partnership
Nvidia’s proposed $3 billion investment accompanies an expanded technology relationship covering Meta’s Muse AI models, data center infrastructure and networking systems.
Meta has increased its current common stock offering to $25 billion, with combined potential proceeds of up to $37.5 billion when the depository share offering is included.
The company has also outlined a separate $60 billion non-voting share offering planned for 2027.
The announcements provide further details of Meta’s financing plans and its intended use of Nvidia technology as the companies expand their collaboration on artificial intelligence infrastructure.