Nvidia and MediaTek said Monday they are deepening their partnership, with Nvidia investing $3.5 billion in convertible bonds issued by the Taiwanese chipmaker, according to a joint announcement from the companies.
Three areas of collaboration
The expanded deal spans three fronts. In AI infrastructure, MediaTek will adopt Nvidia’s NVLink Fusion platform, giving cloud providers and model developers a pre-validated path to build custom processors that plug directly into Nvidia’s rack-scale AI systems, rather than designing their own interconnects from scratch.
In local AI computing, the companies will keep co-developing future generations of Nvidia’s RTX Spark and DGX Spark chips, which pair Nvidia GPUs with MediaTek systems-on-chip for consumer PCs, developer workstations and small AI supercomputers. MediaTek has already supplied components for the Grace Blackwell superchip that powers the current DGX Spark line.
The two firms will also continue building automotive platforms, combining MediaTek’s Dimensity Auto chip designs with Nvidia’s DRIVE AGX computing and software for AI-powered, software-defined vehicles.
Nvidia CEO Jensen Huang said AI “is transforming every computing platform — from the world’s largest AI factories to the PC and the car,” while MediaTek CEO Rick Tsai pointed to combining Nvidia’s hardware leadership with MediaTek’s chip portfolio “from edge to cloud.”
Part of a broader spending pattern
The investment extends a run of multibillion-dollar deals Nvidia has struck with partners across the AI supply chain this year, coming on the heels of the company’s record $96.2 billion quarter. Rivals have pursued comparable tie-ups: Google recently secured the right to buy a $12.2 billion stake in Marvell under its own AI chip agreement.
MediaTek shares rose roughly 10% on the Taiwan Stock Exchange after the announcement, as investors welcomed the closer link to Nvidia’s AI business.