NVIDIA Deepens Partnership with MediaTek to Dominate Custom AI Chip Market

NVIDIA Corp. (NASDAQ:NVDA) is expanding its reach into custom AI chips through a deeper partnership with MediaTek, providing another avenue to capture spending as major tech companies increasingly develop their own processors.

The $3.5 billion investment in convertible bonds issued by MediaTek strengthens the partnership spanning data centers, PCs, and vehicles.

NVIDIA Targets The Custom AI Chip Market

MediaTek will offer NVIDIA’s NVLink Fusion technology to customers developing their own AI chips. This allows those processors to connect with NVIDIA's broader AI infrastructure rather than requiring customers to build every surrounding component themselves.