Nvidia has committed $3 billion to Meta Platforms’ recently announced equity offering, deepening a partnership that places Meta’s Muse AI agent at the center of its artificial intelligence strategy. The investment was announced Monday and sent Nvidia shares up about 1% on Tuesday, while AMD climbed more than 5% after revealing a separate $1 billion investment in the same offering. Meta shares slipped around 1.1%, and Broadcom gained more than 3%.
Under the expanded collaboration, Meta will increase its deployment of Nvidia hardware to support its AI agents, and the companies said they would explore further technological cooperation. AMD said its Helios server racks would support Meta’s AI models and services. The arrangements highlight how major chipmakers are competing to secure relationships with large technology customers that are investing heavily in AI infrastructure.
Meta is also reportedly preparing to manufacture a new in-house AI chip beginning in September, adding a competitive dimension to its infrastructure spending. The company has worked with Broadcom on custom chip development, and Broadcom has expressed interest in participating in Meta’s equity offering. Nvidia’s investment may help reinforce demand for its hardware but does not guarantee an exclusive supply arrangement.
Nvidia’s growing role in financing AI infrastructure has drawn scrutiny. The company earlier agreed to guarantee up to $105 billion in conditional lease and power payment obligations tied to an OpenAI data-center project in Ohio, and agreed to invest $1.5 billion in project developer SB Energy. It has also purchased unsold cloud-computing capacity from CoreWeave. Some analysts have compared such arrangements to dot-com era vendor financing, though Nvidia CEO Jensen Huang rejected the comparison, saying: “Is this circular financing? No. OpenAI will pay the lease.”
David Merry, CEO of Kyro, said upcoming earnings from Amazon, Alphabet and Microsoft will be a key catalyst. Investors will look beyond headline AI spending to assess whether companies are generating sufficient revenue growth and business returns to justify continued investment. Merry noted that if rising AI spending fails to translate into stronger returns, investors may question whether the current pace of investment can be sustained.
