Nvidia's NVLink Empire Expands as Tech Giants Flock to License Interconnect

Nvidia is building an empire based on its NVLink technology, and it's not just about selling chips. The company has invited competitors to license its interconnect tech, which allows for high-speed data transfer between different components in a system. MediaTek, Amazon, Fujitsu, Qualcomm, Arm, and Marvell are among the companies that have already licensed or will be licensing NVLink Fusion.

Nvidia's licensing strategy is designed to keep companies hooked on its other products, such as GPUs and CPUs. By making it easy for them to integrate their custom AI ASICs with Nvidia's networking tech, the company can sell more of its own components, including NVSwitches and Spectrum-X Ethernet kits.

The deal between Nvidia and MediaTek is a key example of this strategy in action. In exchange for licensing NVLink Fusion, Nvidia invested $3.5 billion in convertible bonds issued by MediaTek. This allows Nvidia to maintain control over the tech while still generating revenue from its licensing agreements.