Nvidia Pumps $3.5 Billion into Custom AI Hardware Push with MediaTek

Nvidia has invested $3.5 billion in Taiwanese chip designer MediaTek to enhance its custom AI hardware solutions.

The partnership aims to accelerate adoption of Nvidia's proprietary interconnect, which enables high-speed data transfer between chips inside massive server racks.

This move targets the 'glue' in AI data centers, where networking and system design can be more critical than the compute chip itself.

Nvidia seeks to maintain its position at the center of AI infrastructure decisions, even as big buyers start designing their own custom hardware.