Nvidia will invest $3 billion in Meta stock. The companies will expand their work on AI agents

Nvidia announced that it will invest $3 billion in Meta’s stock offering after the social media and AI giant announced plans to raise up to $95 billion to fund investments in artificial intelligence infrastructure. Meta had reported just the day before that Nvidia, Advanced Micro Devices, and Broadcom had expressed interest in purchasing up to $5 billion worth of shares in the company that owns Facebook.

The companies also announced an expansion of their collaboration in the field of AI agents.

In announcing the investment, Nvidia also said that Mark Zuckerberg’s company will expand its use of Nvidia’s Vera Rubin platform and Vera processors. In addition, the two companies will deepen their collaboration on Muse—Meta’s AI agent, which was launched last month. “AI agents are a new computing paradigm: programs that understand our goals, reason, use tools, and perform tasks for us,” said Nvidia CEO Jensen Huang, commenting on the agreement. “This is changing the way we use computers: from running applications to working with intelligent agents,” he added.

Meta CEO Mark Zuckerberg, in turn, noted that the company is “pleased to continue working with Nvidia to bring the best personal agents and cutting-edge AI models to billions of people.”

In addition, Nvidia and Meta may also expand their collaboration through Nvidia’s OpenShell software product (which allows developers to manually restrict certain agent capabilities), including using it for secure software deployment and employing the Sentry tool to monitor the behavior of AI models, Reuters adds.

Nvidia shares rose 0.67% in premarket trading on Tuesday, while Meta shares fell 0.17%.

Yesterday, Meta announced plans to raise up to $95 billion through the sale of common and preferred stock. The company intends to use the proceeds to fund its AI research and development.

CNBC notes that Nvidia is rapidly increasing its stakes in the companies driving the artificial intelligence boom. Its investment in Meta is yet another example of how the world’s most valuable company (Nvidia’s market capitalization exceeds $5.2 trillion) has become a sort of banker for AI, writes The Wall Street Journal. Nvidia often invests in companies that buy its chips or uses its own balance sheet to guarantee their financing. Specifically, the chipmaker has invested in OpenAI, Anthropic, Intel, and xAI. Overall, according to Dealroom, Nvidia has participated in 121 investment rounds since the beginning of the year, compared to just 13 in 2022.

This article was AI-translated and verified by a human editor