MediaTek

Semiconductors · AI Infrastructure · Data Center

Partnership

MediaTek secures $3.5B Nvidia investment to expand NVLink Fusion pact

It signals Nvidia embracing custom AI chips from hyperscalers, as long as they still run through its networking stack.

• NVIDIA invested $3.5 billion in MediaTek's record $3.9 billion overseas convertible bond offering, deepening a partnership to bring MediaTek's custom AI chips into NVIDIA's rack-scale infrastructure.
• MediaTek is the world's largest smartphone chipmaker and Qualcomm's chief rival, and has been pushing into custom AI silicon for hyperscalers and cloud providers.
• MediaTek will adopt NVIDIA's NVLink Fusion platform, giving customers a prevalidated way to build custom XPUs that plug directly into NVIDIA's NVLink-connected, rack-scale AI factories.
• The expanded collaboration also covers local AI computing, with future RTX Spark and DGX Spark PC chips combining MediaTek SoCs with NVIDIA GPUs, plus joint automotive AI platforms.
• MediaTek shares jumped 10% on the news, extending a nearly 200% rally in the stock so far this year.
• The move follows NVIDIA's NVLink Fusion tie-up with AWS just a week earlier, as Amazon, Google, Microsoft, OpenAI and Anthropic all build their own AI chips to reduce reliance on NVIDIA GPUs.
• By opening NVLink to outside silicon rather than fighting the custom-chip trend, NVIDIA cedes some GPU share but locks its interconnect standard into the next generation of AI factories, a bet that controlling the plumbing matters more than controlling every chip.