AI NewsWaveNvidia Invests $3 Billion in Meta Share Offering and Expands AI Cooperation
Key points
- Nvidia joins Meta's capital raise with $3 billion
- Cooperation widens around AI agent "Muse"
- Meta seeks to raise up to $95 billion
Nvidia will take part in Meta's capital raise with $3 billion. TheElec reported that Nvidia disclosed the investment on Oct. 26 (local time) and that the amount is about 3.984 trillion won. Digital Today reported the news on Oct. 27 (local time), citing The Wall Street Journal, and AI Newspaper (인공지능신문) put the amount at about 4 trillion won.
According to TheElec, Meta announced the same day an offering of 250 million Series A depositary shares at $50 per share and Class A common stock at $625 per share, worth $25 billion (about 33.202 trillion won).
The cooperation centers on AI agents. Digital Today reported that the two companies are widening cooperation centered on Meta's AI service "Muse." AI Newspaper reported that they are strengthening strategic cooperation around Muse and related AI model families. Digital Daily mentioned in its headline optimizing AI models on Vera Rubin.
Meta is increasing the scale of its AI infrastructure financing. Chosun Biz reported that on Oct. 26 (local time) Meta is seeking to raise up to $95 billion (about 126 trillion won) through a capital raise and a planned new class C non-voting stock, among other means. TechM reported that major chip companies such as Nvidia, AMD and Broadcom are also showing interest in investing. AI Times reported that Meta launched the Muse service in Japan on Oct. 23 and that it passed 10 million U.S. downloads 40 days after its release. Digital Today, citing Business Insider, reported that Meta set next year as the point when its loss-making AI and hardware businesses will improve profitability.
Glossary A capital increase (rights or share offering) is when a company issues new shares, sells them to investors and raises funds with the proceeds.