Nvidia Plays Kingmaker Again. Why the Meta Deal Is a Winning Move.

Just days after Meta Platforms (NASDAQ: META) announced plans to raise $97.5 billion to fund its AI infrastructure build-out, the company is signing on a new partner: Nvidia (NASDAQ: NVDA).

Nvidia and Meta announced on Tuesday morning that they would expand their partnership around Muse and the Muse family of models, and Nvidia will invest $3 billion in Meta’s new equity offering.

Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »

As part of the collaboration, Meta will expand Vera Rubin and Vera CPU deployment to boost performance and scale workloads.

Nvidia said that the surging growth of the new Meta Muse personal AI agent led to the expanded partnership.

What it means for Meta

For Meta, the company receives a $3 billion investment from Nvidia and helps ensure it has access to the chips and hardware it will need as it aggressively expands its AI capabilities and invests in new data centers and infrastructure.

Nvidia continues to dominate the market for AI chips and has much of the cutting-edge technology that hyperscalers need, so it’s important for companies like Meta to establish a close relationship with Nvidia.

What it means for Nvidia