Nvidia puts $3 billion into Meta, which buys more Nvidia hardware

Nvidia puts $3 billion into the future stock offering of Meta, the Wall Street Journal reports. Meta makes the AI agent app Muse. Meta wants to get a maximum of $95 billion through stock offerings for its AI infrastructure. Meta is a customer of Nvidia and will use more of its hardware. The 2 companies said they will extend their partnership around Muse.

How it works

Nvidia buys into a customer. Meta wants to use more Nvidia infrastructure for its next generation of AI agents. This is Vera Rubin systems and Vera processors.

The numbers

• Nvidia puts $3 billion into the offering.
• Meta wants to get a maximum of $95 billion.
• AMD and Broadcom show nonbinding interest in a maximum of $5 billion combined, CNBC reports.

What is not known

The source gives no share price and no terms. Critics name this pattern circular financing. They tell that it can hide how large the market is.

Insight: Nvidia may be paid twice by one customer

Nvidia puts $3 billion into Meta, which wants to use more Nvidia infrastructure. Nvidia CEO Jensen Huang also thinks about a fee of about $2,000 for each GPU each year for its agent software. This reads as a move by Nvidia to lock in buyers of chips and of software with its money. Add that fee to your plan.