Nvidia will invest $3 billion in the share offering launched this week by Meta, the company announced on Tuesday, October 27, 2026. Meta is one of Nvidia’s largest customers, and it will use the proceeds to keep filling its data centers with Nvidia processors.
The money travels in a circle. That says something about the deal, and more about a sector in which even a company with Meta’s balance sheet has to tap the market to keep pace.
What the Nvidia-Meta agreement involves
The investment comes through the stock offering Mark Zuckerberg’s company launched on Monday, October 26, 2026, and it carries a broader industrial agreement with it. In a joint statement, the two companies said they will deepen their work on Muse, the assistant Meta launched in September, and on the whole family of models of the same name. The two will work together on performance in training and in inference, the stage where a model generates answers for users.
In exchange, Meta has committed in writing to expand its use of Nvidia technologies: Vera Rubin systems, Vera processors, Spectrum-X Ethernet networking and BlueField-4 units. Some of those products have yet to reach full commercial rollout.
The financial terms are thinner. Nvidia has not said whether it will buy common shares, convertible preferred shares or both, nor how many securities it will end up holding.
A $97.5 billion raise
Nvidia’s stake is one piece of a deal that Bloomberg ranks among the largest equity issuances in history. On Monday, October 26, 2026, Meta said it planned to raise up to $95 billion, starting with roughly $35 billion split between $22.5 billion in Class A common shares and $12.5 billion in mandatory convertible preferred shares. Demand was strong enough that Meta lifted the common-share portion mid-process to $25 billion, priced at $625 each, taking the first block to $37.5 billion and the full plan to $97.5 billion.
The cash will arrive less neatly than the headline figures suggest. The common shares were sold through forward contracts, so Meta collects the roughly $24.9 billion in net proceeds only at settlement, scheduled by November 19, 2027. The preferred shares, issued as 250 million units of $50 each, pay an annual dividend of 6.50% and convert into common stock around August 15, 2029.
Nvidia, AMD and Broadcom had signaled they were prepared to subscribe up to $5 billion between them. Tuesday’s announcement puts Nvidia alone at three-fifths of that.
The remaining $60 billion will come through an at the market program, which sells shares into the market in small increments and is not expected to start before the first quarter of 2027. It will use the new Class C shares, which carry no voting rights and were unveiled alongside the October 21, 2026, quarterly results. Meta will hand them to existing shareholders as a stock dividend, one for each share held, an effect close to a two-for-one split that lets the company raise capital without eroding Zuckerberg’s control. According to Semafor, it is the first time since 2013 that Meta has issued new shares into the market.
Why Meta needs all this money
The latest quarterly results showed two sides that are hard to reconcile. Revenue rose 26% to $64.6 billion between July and September, beating analyst forecasts on the strength of advertising. Infrastructure spending over the same months hit $34.91 billion, more than the $32.79 billion of cash generated by operations, pushing free cash flow to negative $2.12 billion.
A $9.89 billion legal charge tied to lawsuits over teen mental health weighed on the result as well. The stock fell about 7% the day after publication.
Meta expects capital expenditures of $135 billion to $145 billion for full-year 2026. It is building four computing superclusters of more than one gigawatt each and plans to almost double its infrastructure against 2025. To pay for it, the company said, it will draw on cash flow, high-grade debt, strategic partnerships and equity capital. For a company that spent recent years using much of its cash to buy back stock, that is a sharp turn.
Wall Street’s reaction
Investors were cautious. Meta shares closed down 1.88% at $630.56 on Monday, October 26, 2026, just above the offering price, taking the loss since the eve of the quarterly report to 9.6%.
Dilution is the main worry. The full plan is worth about 6% of a market capitalization of roughly $1.612 trillion. Canaccord Genuity is not among the pessimists: it kept its Buy rating and a $950 price target, arguing that the dilution is manageable against the company’s growth, in part because much of the new stock cannot be issued before 2027.
Nvidia had a better day. Its shares closed up 2.39% at $216 on Monday. For the chipmaker, the value of the deal lies less in any return on Meta stock than in tightening its ties to a big buyer just as that buyer moves to the next generation of processors. The $3 billion is still a financial investment, and it will not automatically turn into extra revenue.
The circular financing problem
The entanglement revives a debate that has shadowed the AI boom for months. When a chipmaker invests in its own customers and those customers commit to buying its products, real demand gets harder to separate from demand underwritten by the supplier. Nvidia went down this road in September 2025, when it announced plans to invest up to $100 billion in OpenAI. Each new deal of the kind feeds the suspicion that the sector is running on a self-reinforcing mechanism.
Meta has plenty of company in the hunt for capital. Alphabet announced an $85 billion raise in June, SpaceX closed $40 billion of debt financing to buy graphics processors, and Anthropic is preparing to go public. Goldman Sachs estimates that global spending tied to artificial intelligence, across computing, data centers and energy, could reach $7.6 trillion between 2026 and 2031. Last week Ken Griffin, the founder of Citadel, warned that investors are almost certainly inside a bubble.
Both issuances are expected to close on Thursday, October 29, 2026. The Class C program waits until 2027, and its outcome will depend largely on where the stock trades by then. Until that point the market will be reading the quarterly numbers, looking for signs that advertising, Muse and infrastructure can throw off enough cash to keep Meta away from investors’ doors.
Editor’s note
This article was originally published in Italian on money.it by Flavia Provenzani on October 27, 2026 as «Nvidia investe 3 miliardi in Meta e diventa socia del suo cliente. Cosa c’è dietro la maxi raccolta per l’AI». It has been translated and adapted for an international audience by the Money.it International desk.
