Nvidia to Invest $3.5B in MediaTek to Expand AI Chips

Nvidia announced Monday it will invest $3.5 billion in Taiwanese chipmaker MediaTek through convertible bonds, deepening a partnership aimed at building AI computing platforms that span everything from edge devices to cloud data centers.

The size of the commitment is easy to understate. Nvidia took roughly 90% of MediaTek’s entire $3.9 billion convertible bond offering, and the transaction is Nvidia’s largest direct investment outside the United States to date.

As part of the deal, MediaTek will adopt Nvidia’s NVLink Fusion technology, an interconnect system that lets chips from different designers communicate at high speed inside a server rack. That will allow cloud providers such as Amazon, Google and Microsoft to build their own custom AI accelerator chips while still plugging into Nvidia’s broader data-center infrastructure.

"Nvidia is an AI infrastructure company. We expanded beyond pure computing chips years ago," said Dion Harris, Nvidia's senior director, adding that the MediaTek partnership lets customers "standardize on the rack-scale infrastructure."

The investment comes as a growing number of hyperscalers and AI labs develop their own custom silicon to reduce reliance on Nvidia’s graphics processing units. By deepening its ties with MediaTek, Nvidia aims to stay central to AI infrastructure even as customers diversify their chip suppliers — anchoring its interconnect and rack architecture inside the build-outs rather than trying to supply every chip.

The agreement is not confined to data centres. It extends existing work on Nvidia RTX Spark and DGX Spark chips for consumer and enterprise PCs, and on AI-powered automotive platforms built around MediaTek’s Dimensity Auto line.

This article is not investment advice.