Meta raises 3.3 trillion THB through significant stock sale with investments from AMD, NVIDIA, and Broadcom

Meta announced a large fundraising round totaling 97.5 billion dollars (approximately 3.3 trillion THB) to invest in AI infrastructure, the development of the Muse model, and its existing social app business. This fundraising effort is divided into two parts: new stock issuance totaling 37.5 billion dollars, which includes 25 billion dollars in Class C Common Stock and 12.5 billion dollars in Preferred Stock, alongside the sale of previously announced Class A Common Stock valued at 60 billion dollars in the market.

In the first round of fundraising, Meta secured three business partners, all chip manufacturers: NVIDIA, AMD, and Broadcom. They collectively invested 5 billion dollars, with NVIDIA contributing 3 billion dollars and the other two companies each investing 1 billion dollars. The investment is contingent upon Meta agreeing to purchase AI processing chips from all three companies.

The involvement of chip manufacturers investing in AI companies is not a new phenomenon, as evidenced by NVIDIA's extensive investment history. However, this strategy has faced criticism for potentially leading to circular financing, where investments in AI companies are exchanged for long-term chip purchasing agreements, thereby potentially increasing the value of their own stocks. The story was reported by Blognone.