Nvidia will invest $3 billion directly in Meta Platforms, deepening ties between the two AI giants. The move is part of Meta's plan to raise $95 billion for artificial intelligence infrastructure.

Meta chief executive Mark Zuckerberg has reached an arrangement with the company to help cover the cost of a proposed California wealth tax targeting billionaires. Zuckerberg had previously said he would consider leaving the state if the levy took effect.

The Nasdaq fell more than 2% on Thursday, its worst day since June, as Meta and Tesla led declines amid AI spending concerns and rising oil prices. Treasury yields also dropped sharply as investors sought safety.

Meta Platforms shares fell 6% after third-quarter spending on artificial intelligence infrastructure pushed the company's free cash flow negative for the first time in years. Prices for Meta's five-year credit default swaps climbed to record highs as investors signaled growing concern over the company's debt risk.

Meta has been fined $25 billion over allegations that it lied to users about how it handled their personal data. BBC Business describes the penalty as the largest yet imposed on Facebook's parent company, surpassing an earlier $18 billion privacy settlement Meta reached with the state of California. Meta has not yet issued a public response.