Nvidia just put $3B into Meta's $97.5B raise. The chip maker is now buying the customer. That got my attention fast. Meta is raising that money to build more AI infrastructure, and a lot of it runs on Nvidia chips and the new Vera Rubin gear for Muse. So Nvidia gets paid on the buildout AND owns a piece of Meta now. I hold both $META & $NVDA , and I like the partnership. But I am not pretending this is simple. When the supplier buys the buyer, you have to ask what happens if the spending ever slows down. Genius partnership or too cozy for comfort? Where do you stand?
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3 Comments
Rudolf de Leeuw@rudolfdeleeuw · 7d
Customers backing their suppliers is not new, but the question is size. If the 3B is small next to Nvidia revenue it reads more like alignment than financing demand, so how would you tell the difference?
Cormick Lockyer@ybcccl · 7d
I am currently holding both $NVDA and $META as well. And I am wondering the same thing. However, I do believe both companies are building for long term growth rather than seeing major changes in the short-term, so market disruptions are quite expected. However I am curious as you are in terms of spending and I am interested to see how this plays out.
David Monroe
@d0p3y71 · 7d
Well if the comments by Musk are any indicator- this “partnership “ may not be as friendly as it seems. It appears to me that all of the Mag 7 are investing in each other to keep the AI buildout going. Lots of massive debt and as you state NVDA is now buying their customers. Where does this lead to? Are the neoclouds a massive bubble and will Coreweave fail or will NVDA step in and eat their debt too? So many questions but I’m loving 🥰 the show 🍿
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