NVIDIA invests $3.5B in MediaTek to expand AI chip ecosystem
On Aug 31, NVIDIA invested $3.5B in MediaTek via convertible bonds to build the NVLink Fusion ecosystem spanning AI data centers, PCs, and autos.
On August 31, NVIDIA and MediaTek jointly announced a deepened long-term partnership. NVIDIA invested $3.5 billion in MediaTek-issued convertible bonds, its largest direct investment outside the United States to date.
In MediaTek's record $3.9 billion overseas convertible bond offering, NVIDIA took the largest single stake, with Alphabet also participating though without disclosed amount. The zero-coupon bonds carry a conversion price of NT$4,513.75 per share, a roughly 115% premium over the NT$3,925 closing price on the pricing date, with closing expected September 8 and listing on the Singapore Exchange.
Under the agreement, MediaTek will adopt NVIDIA's NVLink Fusion platform and NVHBM technology to help customers develop custom XPUs and seamlessly integrate them into NVIDIA NVLink-connected rack-scale AI factories. NVLink interconnect has never been opened externally before; this "conditional opening" is a key step in NVIDIA's transformation from a pure GPU maker into an AI infrastructure company.
The partnership covers three areas: AI infrastructure (MediaTek + NVIDIA NVLink Fusion ecosystem), local AI computing (continued co-development of NVIDIA RTX Spark and DGX Spark PC chips integrating NVIDIA GPUs with MediaTek SoCs), and automotive (continued software-defined vehicle platform development). NVIDIA CEO Jensen Huang said the two sides are "significantly expanding" cooperation scale.