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Nvidia to invest $3.5 billion in chipmaker MediaTek, expand partnership

The investment deepens collaboration on custom AI chips, data centers, PCs and vehicles as MediaTek seeks to challenge Broadcom and Marvell.

  • On Monday, Nvidia announced a $3.5 billion investment in MediaTek through convertible bonds, deepening collaboration across data center infrastructure, automotive platforms, and consumer PCs.
  • MediaTek will adopt Nvidia's NVLink Fusion platform, allowing customers to develop custom AI chips that connect to Nvidia-powered systems, expanding prior work on the GB10 Grace Blackwell Superchip and RTX Spark.
  • This investment mirrors terms Nvidia secured with Amazon, which agreed to incorporate 2 million Nvidia components into its infrastructure; Nvidia has similarly invested in supply chain partners Lancium and Marvell Technology.
  • CEO Jensen Huang stated that AI is transforming every computing platform, while CEO Rick Tsai said the investment "strengthens a collaboration that spans cloud AI infrastructure, local AI computing and automotive in the era of physical AI."
  • The deal has drawn investor scrutiny regarding circular financing practices in the AI sector, though analysts note this approach helps Nvidia anchor its interconnect technology while customers pursue custom silicon.
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Lean Left

NVIDIA announced a $3.5 billion investment to acquire MediaTek's overseas convertible bonds. This is not only NVIDIA's strategy to block cloud giants from developing their own chips, but also provides MediaTek with a huge amount of resources to expand into all aspects of artificial intelligence computing. However, Wall Street's concerns about this supplier financing model have also emerged.

Lean Right

NVIDIA is investing $3.5 billion (approximately 4.8 trillion won) in MediaTek, a Taiwanese fabless (semiconductor design specialist). The plan is to connect custom AI semiconductors designed by MediaTek with NVIDIA's data center systems and expand joint development in the PC and automotive sectors. On the 31st of last month (local time), NVIDIA and MediaTek signed an agreement in three areas: AI infrastructure, local AI computing, and automotive.

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Reuters broke the news in London, United Kingdom on Monday, August 31, 2026.
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