NVIDIA Invests $3.5B in MediaTek to Expand AI Partnership

According to the latest announcement, NVIDIA and MediaTek are deepening their long-term strategic partnership, with NVIDIA planning to invest $3.5 billion in MediaTek through convertible bonds. The two chip designers will also work together to build AI computing platforms spanning edge devices, PCs, automotive systems, and cloud data centers.

Under the agreement, MediaTek will adopt NVIDIA’s new NVLink Fusion platform, enabling customers to deploy customized XPU processors in rack-scale AI factories connected through NVIDIA NVLink. The investment, structured as convertible bonds, further strengthens the strategic alignment between the two companies as AI computing demand expands across data centers and edge applications.

The expanded partnership will focus on three major areas.

AI infrastructure: MediaTek will join the NVIDIA NVLink Fusion ecosystem to help hyperscalers, cloud service providers, and advanced AI model developers build customized AI infrastructure. These solutions will be designed to integrate with NVIDIA rack-scale systems and AI factories, allowing customers to combine customized processors with NVIDIA’s high-speed interconnect technology.

Local AI computing: NVIDIA and MediaTek will continue developing multiple generations of NVIDIA RTX Spark and DGX Spark PC chips. These platforms combine NVIDIA GPUs with MediaTek SoCs and are designed to support consumer PCs, AI development systems, and enterprise workstations.

Automotive: The two companies will also continue developing AI-powered, software-defined vehicle platforms as the automotive industry moves toward physical AI. The collaboration is expected to combine NVIDIA’s AI computing and software capabilities with MediaTek’s expertise in system-on-chip design.

For NVIDIA, the investment represents another step in its strategy to expand its influence across the AI hardware ecosystem. Through technologies such as NVLink Fusion, NVIDIA is building a broader network of partners that can integrate customized processors with its rack-scale computing platforms, helping the company maintain a central role across the AI hardware stack rather than relying solely on its leading AI accelerators.

NVIDIA has previously pursued a similar strategy with Amazon, which has committed to combining NVIDIA’s interconnect technology with its own custom-designed chips. This approach could allow NVIDIA to extend its ecosystem as demand for specialized AI processors continues to grow.

For MediaTek, the partnership marks another important step in its efforts to expand beyond its traditional smartphone chip business and enter the rapidly growing AI data center market. MediaTek expects AI-related chip revenue to reach around $2 billion this year and aims to capture as much as 15% of a data center market estimated at approximately $80 billion next year.

The two companies already have an established technical relationship. MediaTek participated in the development of NVIDIA’s GB10 Grace Blackwell Superchip, which powers the DGX Spark platform. The companies are also working together in the notebook PC market, with MediaTek contributing to NVIDIA’s RTX Spark products.

The expanded collaboration and NVIDIA’s $3.5 billion investment highlight the growing convergence between customized CPUs and XPUs, high-performance GPUs, advanced interconnect technologies, and system-level AI computing. As AI workloads continue moving from centralized data centers to PCs, edge devices, and vehicles, the partnership could further accelerate the development of heterogeneous AI computing platforms.