Nvidia has invested $3.5 billion in MediaTek’s convertible bonds. The companies have also expanded their collaboration in AI infrastructure, edge computing, and automotive systems.
MediaTek to Connect with NVLink Fusion
A key aspect of the agreement is the integration of MediaTek with Nvidia’s NVLink Fusion platform. This platform allows developers to create custom accelerators (XPU) and connect them to Nvidia’s scalable AI systems at the rack level.
Instead of developing the entire infrastructure from scratch, customers can focus on their custom accelerators, while MediaTek and Nvidia provide interconnect, memory, packaging, manufacturing, and rack-scale system technologies.
This effectively expands Nvidia’s ecosystem around its AI factories: companies can use custom chips while remaining within the NVLink infrastructure.
From Data Centers to PCs
The partnership extends beyond servers. MediaTek will continue to work with Nvidia on developing multiple generations of chips for RTX Spark and DGX Spark—compact systems for local AI, workstations, and supercomputers.
The companies will also continue their collaboration in the automotive sector. MediaTek Dimensity Auto platforms will integrate Nvidia technologies for AI functions and graphics in smart car cockpits and will work with NVIDIA DRIVE AGX.
Nvidia Strengthens Control Over AI Stack
The deal indicates that Nvidia is aiming to establish its infrastructure not only in large data centers but also at the edge, in PCs, and in vehicles.
The $3.5 billion investment deepens the partnership beyond a typical technological collaboration. MediaTek gains access to NVLink Fusion and Nvidia’s ecosystem, while Nvidia gains leverage to extend its architecture to custom accelerators and new device classes.
Essentially, Nvidia offers a “chip-to-rack” model: customers can develop their own XPU but connect it to the company’s existing infrastructure. This maintains Nvidia’s role as a linchpin even in scenarios where the final accelerator is not produced by Nvidia itself.
The financial terms involve MediaTek’s convertible bonds rather than a direct equity purchase. According to media reports, the bond issuance amounted to $3.9 billion, marking a record for the company. Buyers include Alphabet and other “international institutional investors.”
Earlier, in August, Nvidia expanded its partnership with Amazon Web Services: the companies will deploy an additional two million graphics processors in AWS’s cloud infrastructure in 2027–2028.
