Nvidia is investing $3.5 billion in the Taiwanese chip designer MediaTek, in a deal meant to help its biggest customers build their own artificial intelligence chips without leaving Nvidia's ecosystem. Under the agreement, MediaTek will adopt Nvidia's NVLink Fusion platform, which lets cloud providers and AI labs design custom processors that plug directly into Nvidia-based data centers.
A hedge against custom silicon
The investment comes as Amazon, Google, Microsoft, OpenAI and Anthropic all pour money into designing their own AI chips to reduce reliance on Nvidia's GPUs. Nvidia's answer is not to fight that trend but to profit from it: if customers build custom chips, Nvidia still wants to supply the networking, software and systems that tie those chips into its data center "AI factories." MediaTek expects its custom data center chip business to generate about $2 billion in revenue this year.
Deepening a long partnership
The two companies already worked together on the GB10 Grace Blackwell Superchip that powers Nvidia's DGX Spark computer. The new deal extends that collaboration across consumer and enterprise PCs, where Nvidia's RTX Spark and DGX Spark lines run on MediaTek designs, and into cars, where MediaTek's Dimensity Auto platform will carry Nvidia technology. MediaTek raised about $3.9 billion by selling convertible bonds, and Nvidia bought $3.5 billion of that total, with Alphabet among the other investors taking part.
From data centers to PCs and cars
Nvidia chief executive Jensen Huang called MediaTek "one of the world's great semiconductor companies." MediaTek's vice chairman and 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." For Nvidia, the deal is a bet that its future is bigger than selling GPUs alone. "Nvidia is an AI infrastructure company," said Dion Harris, a senior director at the firm.
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