Nvidia investing $3.5 billion in MediaTek for AI chip partnership
Nvidia announced on Monday that it is investing $3.5 billion in MediaTek through convertible bonds, deepening a partnership with the Taiwanese chipmaker that spans AI data center infrastructure, consumer PCs, and automotive platforms.
As part of the expanded agreement, MediaTek will adopt Nvidia’s NVLink Fusion platform, which is designed to help hyperscalers, cloud providers, and AI model developers build custom accelerator chips that connect into Nvidia’s rack-scale data center systems, the companies said. The deal also extends their existing collaboration on Nvidia RTX Spark and DGX Spark chips for consumer and enterprise PCs, as well as AI-powered automotive platforms built around MediaTek’s Dimensity Auto line.
“AI is transforming every computing platform — from the world’s largest AI factories to the PC and the car,” Nvidia founder and CEO Jensen Huang said in a statement. “Together, we’re building platforms that bring NVIDIA accelerated computing to new markets and give customers the freedom to create differentiated AI systems at enormous scale.”
MediaTek vice chairman and CEO Rick Tsai said in a statement that Nvidia’s investment “strengthens a collaboration that spans cloud AI infrastructure, local AI computing and automotive in the era of physical AI.”
Nvidia sees the deal as a way to anchor its interconnect technology and hardware architecture within AI data center build-outs at a moment when many of its biggest customers are pursuing their own custom silicon, according to Bloomberg. MediaTek is competing with Broadcom and Marvell Technology for business helping data center operators design custom silicon.
The NVLink Fusion platform gives customers a foundation for building custom accelerator chips — combining NVLink connectivity, high-bandwidth memory, advanced packaging, and rack-scale integration — so they can focus engineering resources on differentiated compute rather than surrounding infrastructure, the companies said.
Nvidia has been investing in companies across the AI supply chain, including power infrastructure developer Lancium and chip designer Marvell Technology. The deal echoes terms Nvidia recently secured with Amazon, which signed on to incorporate 2 million Nvidia components into its infrastructure and agreed to run Nvidia’s connection technology in tandem with chips it develops internally, according to Bloomberg.
MediaTek had previously partnered with Alphabet’s Google and collaborated with Nvidia on the GB10 Grace Blackwell Superchip that powers the DGX Spark developer computer, the companies said.