Nvidia Welcomes Custom AI Chips, Invests $3.5B in MediaTek Partnership
Nvidia's stock price rose around 1% in midday trade on Monday after the company announced a $3.5 billion investment in MediaTek through convertible bonds and expanded its partnership with the chip designer.
In an interview with Bloomberg, Nvidia CEO Jensen Huang said that Nvidia is 'not intimidated' by custom AI chips, adding that specialized processors are already in the market and that Nvidia can benefit by making them easier to integrate with its infrastructure.
The new partnership includes support for MediaTek's custom XPUs to plug into Nvidia's NVLink-connected, rack-scale AI systems through the NVLink Fusion platform. Huang also stated that the companies are developing AI-focused PC chips, including technology aimed at a 'reinvention of the Windows PC for the age of agents.'
Nvidia's GPUs remain general-purpose accelerators capable of handling a broad range of AI workloads, from data processing and model training to inference and agentic AI.