Nvidia puts $3B into Meta's $95B stock raise

Meta is asking investors for up to $95 billion. It announced the plan Oct. 26 to pay for AI infrastructure like data centers. Nvidia said Oct. 27 it will put in $3 billion. Meta also said AMD and Broadcom showed interest in buying shares.

Selling new stock means current shareholders own a smaller slice of Meta. Meta will also keep using cash from its business and borrowed money. But it now expects $135 billion to $145 billion in capital spending this year. Investors noticed. Meta's shares dipped about 1.6% in morning trading after the news. CCS Insight analyst Ben Wood told CNBC what he makes of it. It reflects the "eye-watering levels of investment required to keep up in the AI arms race." He added that Google, SpaceX and soon Anthropic are also going to the markets for cash. Goldman Sachs estimates AI spending across the industry could reach about $7.6 trillion from 2026 through 2031.

Keep reading — what to watch

Will buyers keep funding AI at this pace? The first $35 billion is the first real test. After that, Meta plans $60 billion more through a slow, ongoing sale. Watch two things. Does demand for the shares hold up? And does Meta's spending forecast climb again? Nvidia's $3 billion covers only about 3% of the plan. The bigger signal is who is buying in. Nvidia, the AI chip giant, is backing Meta's AI plans.