NVIDIA and AMD to Invest $4 Billion in Meta Platforms

[Financial News]  

NVIDIA and AMD announced on the 27th (local time) that they would invest $3 billion (about 4 trillion won) and $1 billion (about 1 trillion won), respectively, in Meta Platforms.
The large investments have revived concerns about so-called circular financing, in which AI chipmakers invest in their customers.
Meta previously announced on the 26th that it would raise $95 billion (about 126 trillion won) for AI infrastructure investment, and planned to raise $35 billion by issuing shares through underwriters. It also said that NVIDIA, AMD and Broadcom had expressed interest in buying up to $5 billion worth of its shares.
NVIDIA said on the 27th that Meta plans to expand its adoption of NVIDIA's Vera Rubin and Vera CPU (central processing unit), and that the two companies will deepen their collaboration on Meta's AI agent, Muse. Since its unveiling last month, Muse has generated a buzz and helped drive up Meta's share price.
According to CNBC, NVIDIA CEO Jensen Huang said in a statement, "AI agents represent a new computing paradigm," describing them as "software that understands our goals and intentions and uses tools to get things done on our behalf." He added, "These AI agents have changed the way we use computers, from running applications to working alongside AI agents."
Meta CEO Mark Zuckerberg said, "We're excited to continue working with NVIDIA to bring the best personal agents and frontier models to billions of people."
AMD also announced its investment plan, saying its Helios AI racks and EPYC processors would also be used for Meta's Muse.
In a statement, CEO Lisa Su said, "Together, we are building and deploying gigawatt-scale infrastructure, designing next-generation silicon and software, and enabling Meta's most ambitious superintelligence (SI) models and services."
NVIDIA and AMD are actively investing to strengthen their respective positions amid the AI boom.
NVIDIA is investing in OpenAI, Anthropic, Intel and Elon Musk's xAI. According to Dealroom, NVIDIA has participated in 121 funding rounds so far this year, compared with just 13 in 2022. This means it is actively taking part in AI companies' fundraising efforts to build its own ecosystem.
AMD is also active. Its participation in funding rounds has risen to 25 this year, up from just two in 2022. In July, it pledged to make an equity investment of up to $5 billion in Anthropic.
[email protected] Song Kyung-jae Reporter