Nvidia invests $3.5 billion in MediaTek to expand AI infrastructure and custom chip collaboration
Nvidia has invested $3.5 billion in convertible bonds issued by MediaTek to deepen a longstanding collaboration on AI computing platforms. The deal allows MediaTek to adopt Nvidia's NVLink Fusion platform, which provides a prevalidated foundation for customers to develop custom AI accelerators and integrate them into rack-scale AI factories. By leveraging Nvidia's technology, MediaTek's customers can focus on differentiated compute while relying on Nvidia for networking, memory architecture, and packaging. The partnership also covers local AI computing for PCs and automotive platforms, where MediaTek and Nvidia will continue to collaborate on systems like the DGX Spark and RTX Spark. Jensen Huang, founder and CEO of Nvidia, stated that the collaboration will give customers the freedom to create differentiated AI systems at enormous scale. Rick Tsai, vice chairman and CEO of MediaTek, noted that the investment strengthens a collaboration spanning cloud AI infrastructure, local AI computing, and automotive technology. MediaTek expects its custom AI chip business to generate $2 billion in revenue by 2026.
Sources
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