Nvidia Invests $3.5B in MediaTek to Drive Data Center Dominance

Nvidia is investing US$3.5 billion in MediaTek, deepening their partnership at a time when Nvidia is trying to persuade companies to build chips that plug into its dominant data center ecosystem.

The investment will see Nvidia buy bonds convertible into MediaTek shares and expand their collaboration on NVLink Fusion and the newly announced NVHBM technology.

This move follows a similar agreement with Amazon, which pledged to deploy an additional 2 million Nvidia components and use its connection technology with in-house chips.

Nvidia's CEO Jensen Huang is tightening ties with MediaTek as it seeks to reduce its reliance on the smartphone market and increase its credibility as a design partner for major tech firms building their own AI chips.