Meta aims to raise $35B via stock offering

NVIDIA (NVDA) will invest $3B in Meta's (META) equity offering, expanding their partnership on AI models and infrastructure. Meta will use NVIDIA's hardware, including Vera Rubin and Vera CPUs, for AI-agent development. The deal focuses on improving training and inference performance.

Meta Platforms increased its equity fundraising to $97.5 billion, including a $25 billion common stock offering and 250 million depositary shares at $50 each. The company plans a separate $60 billion share sale program. Nvidia, AMD, and Broadcom expressed interest in investing up to $5 billion. Meta's AI spending led to a $2.12 billion cash burn in Q3, its first negative free cash flow in over a decade.

Meta (META) raised its full-year capex range to $135B–$145B, reported Q3 revenue of $64.6B, and plans to issue new Class C shares in 2027. The company also announced a $60B at-the-market Class C program and a partnership with NVIDIA, where NVIDIA will invest $3.0B in Meta's offering. Meta's credit-default swap spreads hit record highs, reflecting concerns over AI data-center capital expenditures.

NVIDIA (NVDA) will invest $3 billion in Meta (META) and expand their AI partnership, including optimizing workflows and deploying NVIDIA infrastructure. Meta shares were at $630.20, NVIDIA at $215.01 in overnight trading.

Nvidia will invest $3 billion in Meta's equity offering, which aims to raise up to $95 billion. The companies are expanding their AI partnership, with Meta increasing use of Nvidia's infrastructure for AI agents. Meta's Class A shares are priced at $625 each, and depositary shares at $50 each.

Meta shares fell 1.9% to $630.56 as the company plans to raise up to $95 billion for AI expansion, including $35 billion in stock offerings and a $60 billion at-the-market program. Quarterly revenue rose 26% to $64.6 billion, but operating profit fell 37% to $13 billion. Nvidia, AMD, and Broadcom may invest up to $5 billion collectively.