Nvidia Invests $3.5B in Chipmaker MediaTek Amid AI Growth
Nvidia is investing $3.5 billion in Taiwan's MediaTek as part of a record $3.9 billion convertible bond offering. This move comes after Nvidia provided a rare long-term outlook of 70% revenue growth for next year, citing AI's inflection point.
As part of the deal, MediaTek will allow customers to use Nvidia's technology to design their own AI chips that connect directly to Nvidia's larger computing systems. The technology, called NVLink Fusion, gives chipmakers ready-made connectors and specialized memory so custom AI chips can plug into Nvidia's data-center systems.
Nvidia CEO Jensen Huang said the investment is not circular because MediaTek does its own business and Nvidia does its own business. However, portfolio manager Joe Tigay of the Rational Equity Armor Fund noted that Nvidia is financing MediaTek to develop products that extend Nvidia's architecture.