Nvidia's (Nasdaq: NVDA) $3Bn Meta (Nasdaq: META) Bet Exposes Major AI Unknown
Nvidia (Nasdaq: NVDA) buying $3 billion of shares in Meta (Nasdaq: META), one of its biggest customers, is a fresh red flag for the circular AI economy, and it drags the boom's biggest unanswered question into the open: who ultimately pays for AI.
The comments from Nigel Green, CEO of global financial advisory giantdeVere Group, come as Meta moves to raise up to $95 billion through equity offerings to fund its AI spending, with Nvidia, AMD and Broadcom agreeing to buy as much as $5 billion of the shares between them.
AdvertisementMeta is starting with $35 billion of underwritten offerings, with a further $60 billion at-the-market sale that won't begin until early 2027.
In return for Nvidia's backing, Meta plans to expand its use of Nvidia processors and networking products, while its projected 2026 capital expenditure sits at $135 billion to $145 billion.
The pattern stretches well beyond one deal. Nvidia put $100 billion into OpenAI in 2025, and it has since taken stakes in Anthropic, xAI and long-established rival Intel. It has joined 121 funding rounds so far this year, up from 13 in 2022.
The way the boom is financed is shifting too. AI-related debt across Big Tech had doubled to $350 billion by July, and Alphabet unveiled an $80 billion equity plan in June, including $10 billion from Berkshire Hathaway.
The deVere CEO is clear about where he believes AI is heading.
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