Nvidia is deepening its ties with Meta through a $3 billion investment tied to Meta's latest stock offering. The two companies plan to expand their work on Muse, Meta's AI assistant, and improve the models that power it. Nvidia and AMD both participated in the funding round, which raised $97.5 billion in total and was oversubscribed five times over.
The massive raise signals strong demand for AI-related stocks, even as rising interest rates make investors more cautious. A senior Goldman Sachs executive noted that weakness is emerging in parts of the AI market as the cost of capital climbs. She described this as a market repositioning rather than a shift in AI sentiment, saying investors are gravitating toward vertically integrated companies.
Nvidia's data center business brought in $89 billion in its fiscal 2027 second quarter, while Micron reported record fourth-quarter revenue of $54.2 billion. Both companies face risk if tech giants scale back AI investments. Meanwhile, the United States now accounts for 78 percent of new AI compute added in the first half of 2026, up from 60 percent in 2024, with China holding about 10 percent.
On the infrastructure side, CoreWeave is building out a global AI cloud network across four continents, starting with a new data center in Denmark and plans for eight more locations in Europe and Asia. Samsung Electro-Mechanics expects to secure more than half of its 2027 multilayer ceramic capacitor sales through long-term contracts with major tech firms, as capacitance demands per chip double annually. Oracle is also getting into the act with a new AI Security Mesh that uses biometric verification to control agent actions, backed by OpenAI models for risk investigation.
In other developments, AI coding startup Cognition is weighing a new funding round that would value it at $70 billion to $80 billion. Former Biden antitrust officials launched FluxCap, an AI legal startup targeting litigators, as funding for legal AI tools grew nearly 150 percent to $3.2 billion. A new AI model for sports training achieved 98.5 percent accuracy using transparent decision trees, while a benchmark called Omni-InteractScope found that 12 tested models still fail to respond on time for over 60 percent of tool requests.
Key Takeaways
- Nvidia invested $3 billion in Meta as part of a $97.5 billion stock offering that was oversubscribed five times, with AMD also participating as an investor.
- Goldman Sachs warns of emerging weakness in the AI market as the cost of capital rises, calling it a market repositioning rather than a sentiment shift.
- Nvidia's data center revenue hit $89 billion in fiscal 2027 Q2, while Micron reported record quarterly revenue of $54.2 billion, both vulnerable to AI spending slowdowns.
- The US now accounts for 78 percent of new AI compute globally as of H1 2026, up from 60 percent in 2024, while China holds about 10 percent.
- CoreWeave is expanding its AI cloud infrastructure to four continents with new data centers in Denmark, the UK, Spain, Sweden, and Norway.
- Samsung Electro-Mechanics expects over half of its 2027 multilayer ceramic capacitor sales to come from long-term contracts with major tech firms.
- Oracle's AI Security Mesh uses biometric verification and OpenAI models to control privileged agent actions and investigate security risks.
- AI coding startup Cognition is considering a new round at a $70 billion to $80 billion valuation, reflecting strong investor interest in AI coding tools.
- Former DOJ antitrust leaders founded FluxCap, an AI legal startup, as funding for legal AI startups grew nearly 150 percent to $3.2 billion from 2024 to 2025.
- A new deep neural decision forest model achieved 98.5 percent action recognition accuracy in sports training, while a benchmark found 12 AI models fail to respond on time for over 60 percent of tool requests.
Nvidia invests $3 billion in Meta to expand AI partnership
Nvidia announced it will invest $3 billion in Meta Platforms as part of Meta's stock offering. The two companies will expand their work on Muse, Meta's AI assistant, and improve the models that power it. The partnership aims to improve both AI model training and inference. Nvidia and Meta already have a close working relationship and have discussed future tools for AI agents.
Nvidia and Micron face risk if AI spending slows
Nvidia and Micron Technology have both benefited from the AI spending boom and reported record recent results. Nvidia's data center business brought in $89 billion in its fiscal 2027 second quarter. Micron reported record fourth-quarter revenue of $54.2 billion and full-year revenue of $133.2 billion. Both companies could face challenges if tech giants cut back on AI investments.
Meta raises $97.5 billion as AI investors show strong demand
Meta Platforms announced multiple stock offerings totaling $97.5 billion in new funds. The offerings included $25 billion in stock, $12.5 billion in preferred stock, and $60 billion in new Class C stock. Nvidia and AMD were among the investors. The offering was oversubscribed five times, showing strong demand for AI-related stocks despite rising interest rates.
Goldman exec says investors growing more careful on AI
A senior Goldman Sachs executive said weaknesses are developing in the AI market as the cost of capital rises. Kim Posnett spoke at The Information's WTF Summit about investors gravitating toward vertically integrated companies. Goldman is playing key roles in major AI deals including SpaceX's GPU financing and Meta and Nvidia funding their suppliers and customers.
Goldman Sachs sees market repositioning amid AI boom
Kim Posnett, Goldman Sachs' global co-head of investment banking, said areas of weakness are emerging in the AI market as the cost of capital rises. She said investors are growing more discerning. Posnett emphasized this is not a change in AI sentiment but a repositioning of the market. She remains hugely bullish on AI overall.
New AI model brings transparency to sports training with 98.5% accuracy
Zhibin Hu developed a deep neural decision forest that combines deep learning with transparent decision trees. The model achieved 98.5 percent action recognition accuracy and a 98.3 percent F1 score on three public sensor datasets. It outperforms traditional convolutional neural networks by 4.3 percentage points while still producing readable decision paths. The system uses wearable sensor data and generates movement quality scores that coaches can audit and understand.
Former Biden antitrust officials launch AI legal startup FluxCap
Jonathan Kanter and Doha Mekki, former leaders of the Justice Department antitrust division, founded FluxCap. The startup builds an AI tool for litigators that speeds up evaluating claims, analyzing evidence, and outlining arguments. Funding for legal AI startups grew nearly 150 percent from 2024 to 2025, reaching $3.2 billion. FluxCap aims to stand out by pairing elite lawyers with deep antitrust expertise and AI technology to litigate at scale.
AI coding startup Cognition weighs new round at $70 to $80 billion valuation
AI coding startup Cognition is considering a new funding round that would value the company at $70 billion to $80 billion. The company was cofounded by Wu in 2023. The potential round reflects the rapid growth and investor interest in AI coding tools. Details about the funding terms and timing remain limited.
US share of new AI compute rises to 78% in first half of 2026
New data from Epoch AI shows the United States now accounts for 78 percent of new AI compute added in the first half of 2026. That share grew from 60 percent in 2024 and 72 percent in 2025, measured in H100-equivalent units. China holds about 10 percent of new compute over the same period. Export controls, heavy hyperscaler investment, and data center expansion are driving the widening gap.
Oracle plans biometric approval for AI agents, partners with OpenAI for security
Oracle announced the AI Security Mesh, which combines AI vulnerability testing with biometric verification for sensitive agent actions. OpenAI provides advanced models to help security teams investigate risks and prioritize remediation. Under the plan, an AI agent can request a privileged operation, but an authorized employee must pass biometric verification before it proceeds. Each agent operates under a separate identity with task-specific permissions and just-in-time access.
CoreWeave builds global AI network across four continents
CoreWeave is expanding its AI cloud infrastructure to cover four continents with new data centers. The company opened its first facility in Denmark and plans to build eight more locations in the UK, Spain, Sweden, and Norway. It also intends to add points of presence in the UAE, India, Indonesia, Singapore, Australia, South Korea, and Japan starting in late 2026. These new sites will use NVIDIA technology and feature high-speed connections to support secure AI workloads worldwide.
New benchmark shows AI models struggle with timely actions
Researchers created a new test called Omni-InteractScope to evaluate how well AI models handle continuous video and audio streams. The benchmark includes 1,479 human-annotated interactions and tests eight different task groups. Results show that all 12 tested models fail to respond on time for more than 60 percent of tool requests. Additionally, the models are poor at giving reminders without being asked and rarely provide complete step-by-step guidance.
Samsung Electro-Mechanics wins majority of 2027 AI chip parts
Samsung Electro-Mechanics expects to secure more than half of its 2027 multilayer ceramic capacitor sales through long-term contracts. The company signed deals with major tech firms to supply parts needed for AI data centers and servers. Demand for these components is rising because the capacitance required per chip is doubling every year due to better GPU and ASIC performance. Samsung plans to increase its capacity for these high-value products to meet the growing global demand.
Sources
- Nvidia’s New $3 Billion AI Bet Is on One of Its Own Customers
- AI Spending Is Nearing $1 Trillion Annually. These 2 Stocks Are Most at Risk If It Slows.
- Meta Platforms Just Delivered Great News to AI Stock Investors
- Goldman Exec Says Investors Growing More Judicious on AI
- Goldman Sachs Investment Banking Co-Head Sees ‘Repositioning’ Amid AI Boom
- AI model makes sports training decisions transparent with 98.5% motion recognition accuracy
- Biden’s Antitrust Enforcers Are Starting an A.I. Legal Company
- AI coding startup Cognition is weighing a new funding round
- The US’s Share Of New Compute Has Risen From 60% In 2024 To 78% In First Half Of 2026
- Oracle plans biometric approval for AI agents, taps OpenAI for security testing
- CoreWeave Expands AI Cloud Infrastructure Footprint at a Global Scale
- Omni-InteractScope: Benchmarking Proactive and Agentic Interaction in Continuous Omnimodal Streams
- Samsung Electro-Mechanics secures majority of 2027 AI MLCC sales via long-term deals
Comments
Please log in to post a comment.