AMD Invests $1 Billion in Meta Offering as Company Plans Record AI Expansion Funding
Key Facts
AMD said on October 27 that it would invest $1 billion in Meta’s share offering, part of a broad funding effort to expand the social media company’s artificial intelligence infrastructure. Meta raised its planned offering to $97.5 billion, targeting funding for that expansion, according to Reuters via Investing.com. The investment puts AMD among chip suppliers participating financially in funding one of their largest customers. AMD said in its official announcement that the partnership covers systems, software and networking, as well as processors and graphics processing units. It also said initial Helios systems are being tested at Meta.
The partnership coincides with Meta’s expanded use of AMD technology across its operations. EPYC processors power Muse environments, while Instinct accelerators are used in training and recommendation systems, according to details in the official partnership announcement. Meta is also testing initial Helios systems, giving the collaboration a scope beyond supplying individual components. This is tied to elevated capital spending plans: Meta narrowed its 2026 forecast to a range of $135 billion to $145 billion, compared with a previous estimate of $130 billion to $145 billion, according to the Associated Press. The increase in the forecast’s lower bound reflects the resources the company is dedicating to expanding its computing capacity.
Meta generated revenue of $64.60 billion in the third quarter of 2026, up 26% from $51.24 billion in the same period a year earlier and above analysts’ expectations of $63.34 billion, according to the Associated Press. The results provide a financial backdrop for higher spending, while investors will monitor whether the investment can support revenue growth. In AI products, Mark Zuckerberg said more than 10 million people in the United States and Canada had created Muse accounts as of October 21, 2026. The figure links infrastructure expansion with an effort to broaden the user base for the company’s AI tools. This comes as Meta continues to raise capital investment alongside quarterly revenue growth.
AMD’s investment came amid broader interest from chip suppliers in Meta’s offering. Reuters had reported that Nvidia, AMD and Broadcom expressed combined interest of up to $5 billion in buying Class A shares, before named commitments were announced. Nvidia separately announced a $3 billion investment in the offering, alongside AMD’s $1 billion investment, according to Reuters via Investing.com. The plan includes raising $25 billion through common stock, up from the $22.5 billion Meta disclosed the previous day. The company also plans to raise up to $62.5 billion through an at-the-market Class C share program. The plan therefore combines a common stock issuance with an at-the-market program to finance its expansion.
The participation of chip suppliers in funding a major customer has prompted discussion about circular capital flows in the AI sector. Reuters said the companies’ interest in financing adds to concerns that chip suppliers may help one of their largest customers fund an expansion that could, in turn, increase demand for their technology. This is not a stated explanation from AMD for its investment; its announcement was limited to the investment and partnership. In trading, Meta shares closed at $611.44 on October 28, 2026, according to EL7 data. AMD is scheduled to report results on November 3, the next date for investors to assess the company’s performance.