Meta lifts AI stock sale to $97.5 billion; Nvidia buys $3 billion

Who's buying: Nvidia said Tuesday it will invest $3 billion in the offering, as part of a wider deal to work with Meta on its Muse AI assistant and models. Meta also said it will expand its use of Nvidia hardware, including Vera Rubin systems, Vera CPUs, Spectrum-X networking and BlueField-4. AMD separately announced a $1 billion investment, according to Reuters. On Monday Meta had said Nvidia, AMD and Broadcom together indicated interest in up to $5 billion of the shares.

The terms: The preferred stock pays a 6.50% annual dividend, which Meta can pay in cash or stock, starting Feb. 15, 2027. Each depositary share converts automatically on or about Aug. 15, 2029, into between 0.0681 and 0.0800 Meta shares, depending on the stock price then. Because the common stock is sold through forward sale agreements, Meta gets that money when the agreements settle, not right away. Meta shares closed down nearly 2% at $630.56 on Monday and were down about 1% Tuesday morning, Reuters reported, just above the $625 offering price.

The bigger pattern, chipmakers funding their customers: Nvidia's stake is part of a growing loop in which AI chip suppliers help pay for the buildouts that buy their chips. On Monday, Bank of America, Blackstone, Citi and Morgan Stanley announced a $63 billion vehicle that will buy Broadcom AI chips and networking gear and lease them to Anthropic, with Broadcom guaranteeing part of the lenders' losses if the gear loses value. The Wall Street Journal called it the biggest AI infrastructure debt deal ever. Reuters said such chipmaker investments add to concerns about an "increasingly circular flow of capital" in AI; Axios wrote that an Nvidia investment is becoming "all but table stakes" for big AI players and a guarantee of future revenue for Nvidia.

What's still unknown: whether underwriters buy the extra 37.5 million preferred shares they have an option on, which would raise about $1.8 billion more; whether Broadcom invests in Meta's sale; and when, or whether, the $60 billion program happens. Meta has said its timing, size and terms are not set. Alphabet, Microsoft and Amazon report earnings this week, which investors are watching for signs that AI spending is paying off.

Updated Oct. 27, 2026: Meta priced the offering and raised the common-stock portion to $25 billion from $22.5 billion, lifting the total plan to $97.5 billion from $95 billion; added Nvidia's $3 billion commitment and AMD's $1 billion (per Reuters). Terms come from Meta's pricing release and Nvidia's announcement; market reaction and context from Reuters, Axios, CNBC and The Wall Street Journal. The $60 billion share-sale program is still not agreed, and its timing, size and terms are not set. The hero photo is a file photo (2022) of the sign at Meta's Menlo Park headquarters.