Nvidia is putting $3.5 billion into MediaTek as the two expand their AI chip partnership and build a broader custom-silicon ecosystem.
Nvidia is investing $3.5 billion in Taiwan-based chipmaker MediaTek, deepening a strategic relationship as both companies expand their presence across the growing artificial intelligence (AI) hardware market.
The investment is part of MediaTek’s record $3.9 billion overseas convertible bond offering. Alphabet also participated in the fundraising, although the size of its investment was not disclosed.
The deal strengthens Nvidia’s financial ties with MediaTek while supporting the Taiwanese chipmaker’s push beyond smartphones into AI chips for data centres. MediaTek is also backed by a $5 billion financing plan aimed at developing its data-centre AI chip business.
A key part of the partnership is Nvidia’s NVLink Fusion technology. It will allow MediaTek and its customers to develop custom AI chips that can connect directly to Nvidia’s larger computing platforms.
NVLink Fusion provides the interconnect technology and specialised memory capabilities needed to integrate custom processors with Nvidia’s data-centre systems. This can reduce development time and engineering costs for companies building their own AI chips, while increasing the range of processors that can work within Nvidia’s ecosystem.
The arrangement gives both companies a commercial advantage. MediaTek gets an established route into the AI infrastructure market, while Nvidia strengthens demand for its computing and networking architecture as customers increasingly adopt customised AI processors.
Nvidia and MediaTek are also working together on chips for personal computers and technologies for AI-powered vehicles. In June, the companies launched the RTX Spark PC chip, targeting AI-enabled laptops and desktops.
The latest investment comes as Nvidia forecasts 70 per cent revenue growth next year, reflecting continued demand for AI infrastructure.
For MediaTek, the deal supports its diversification into higher-value markets beyond smartphones. For Nvidia, it represents another step in expanding its AI business from individual processors into a broader hardware ecosystem spanning computing, connectivity, and custom silicon.
