Three Chipmakers Express Interest in Buying Up to $5 Billion of Meta Shares

Key Facts

Meta disclosed that Nvidia, AMD and Broadcom each expressed non-binding interest in buying Class A shares worth a total of up to $5 billion as part of its offering announced on October 26, 2026. The disclosure does not specify an individual stake for any company, contrary to an earlier version that attributed a confirmed $3 billion investment to Nvidia. Meta said in a filing with the U.S. Securities and Exchange Commission that the indications of interest "are not agreements or binding commitments to purchase." Under the disclosure, any of the three companies could buy fewer shares than the stated amount, more, or none at all. That would put potential chip suppliers among the financiers of a major customer’s expansion in computing and AI, without establishing how much they will actually participate.

The announced financing consists of two simultaneous public offerings worth about $35 billion, including about $22.5 billion of Class A common stock and about $12.5 billion of depositary shares representing mandatory convertible preferred stock. The offering gives Meta a major source of financing as it expands the infrastructure needed to run AI services. The company also intends to launch an at-the-market stock sale program worth about $60 billion after Class C shares begin trading. The disclosure, however, does not establish the timing, final size or terms of the future program. Meta says it will not receive proceeds from common shares sold through forward sale agreements at the initial sale, as those agreements can be settled on dates chosen by the company through November 19, 2027.

Meta expects capital spending of between $135 billion and $145 billion in 2026, linking the financing’s importance to a costly expansion plan for data centers and computing capacity. The company said it is building four supercomputing clusters, each with capacity exceeding one gigawatt. It also expects the total capacity of its infrastructure to approach double in 2026 compared with the previous year. In February, Meta and Nvidia announced a multi-year, multi-generation strategic partnership spanning infrastructure inside data centers, cloud and AI. Meta said the collaboration includes deploying Nvidia technologies, including its Blackwell and Rubin GPUs, processors and Spectrum-X networking; the partnership announcement did not specifically tie the expansion to the Muse family or confirm the use of the phrase "Vera Rubin and Vera CPUs."

The expansion follows Meta’s 26% year-over-year revenue growth to $64.6 billion in the third quarter of 2026, while net income was $9.9 billion. The company said it had recorded six consecutive quarters in which annual revenue growth exceeded 20%. It attributed part of this performance to AI improvements in its recommendation, engagement and advertising systems. The company is also betting on its new services: it said it attracted more than 10 million Muse users in the United States and Canada during the first weeks after its launch. Shopping was the leading use, it added, with more than 25% of weekly active users taking part in the activity.

The potential participation of chip suppliers in Meta’s financing raises the question of circular financing in the AI sector: companies that sell computing infrastructure may buy shares in a customer that uses the capital to expand its capacity and demand for those products. This possibility does not turn the indications of interest in the disclosure into commitments, nor does it reveal potential purchase terms or the size of any final purchases. In trading on October 26, Meta shares initially fell more than 2% after the financing plan was announced, then turned positive before slipping to a 1.9% loss, according to the Associated Press. The stock closed at $630.56, while Nvidia shares closed at $216 the same day. The next step in the additional financing remains linked to the start of trading in Class C shares, while settlement of the forward sale agreements, according to the disclosure, can extend no later than November 19, 2027.