Nvidia Invests Big in MediaTek, Partnership Set to Bolster AI Chip Development

Taiwan's MediaTek has secured a major investment from Nvidia, which will see the US-based chip designer buy $3.5 billion of MediaTek convertible bonds as part of its record $3.9 billion overseas bond issuance.

The deal deepens the partnership between the two companies in AI infrastructure and expands Nvidia's reach beyond its core graphics processors. The investment is part of MediaTek's efforts to expand its ambitions in AI data-centre chips, with the company securing approval for a $5 billion funding plan in July.

The partnership will allow MediaTek customers to use Nvidia's NVLink Fusion technology to develop custom AI chips that can connect more easily with Nvidia's computing systems. This could potentially reduce development costs and time for companies looking to integrate Nvidia's technology into their products.