Nvidia invests $3.5 billion in MediaTek convertible bonds: What the expanded AI deal means

Nvidia has invested $3.5 billion in convertible bonds issued by MediaTek, expanding a partnership between the two semiconductor companies as they push into artificial intelligence infrastructure, personal computing and automotive technology, according top a press statement released by the Jensen Huang-led company.

Nvidia's investment was announced on Monday (31 August) alongside an agreement to broaden the companies’ longstanding collaboration across several areas of AI computing. MediaTek will also adopt Nvidia’s NVLink Fusion platform, allowing customers to develop custom AI accelerators designed to connect with Nvidia-powered rack-scale systems, according to their official statement.

The deal is a marker of Nvidia’s effort to extend its technology ecosystem beyond its own chips and into customised computing systems built for cloud providers, hyperscalers and developers of advanced AI models.

What Nvidia’s $3.5 billion MediaTek deal means

The expanded partnership gives MediaTek a larger role in Nvidia’s AI ecosystem while allowing Nvidia to extend its technology into customised computing platforms.

MediaTek will use the NVLink Fusion platform as a design foundation for customers developing custom AI accelerators. Nvidia said the platform provides a prebuilt and system-validated foundation for multi-die XPU development.

NVLink Fusion is designed to provide companies developing specialised processing units, known as XPUs, with a prevalidated foundation for connecting those chips to Nvidia's computing infrastructure.

The technology brings together high-speed connectivity, memory and advanced packaging capabilities. This is intended to reduce the engineering work required to take a custom AI chip from development to deployment in rack-scale systems.

Customers will be able to work with MediaTek to tailor connectivity, memory, packaging, performance and power characteristics to their specific workloads.

“AI is transforming every computing platform, from the world’s largest AI factories to the PC and the car,” said Jensen Huang, founder and CEO of Nvidia.

“MediaTek is one of the world’s great semiconductor companies, with exceptional expertise in system-on-chip design, connectivity, leading performance and power efficiency.”

For Nvidia, the collaboration could help expand the reach of its AI architecture beyond its own processors. For MediaTek, it provides a pathway into the rapidly growing market for custom AI infrastructure.

The companies will also continue collaborating on AI-enabled PCs and automotive systems, extending the partnership across multiple computing markets.

$3.5 billion MediaTek investment strengthens chip alliance

Nvidia said its $3.5 billion investment in MediaTek convertible bonds forms part of the broader collaboration but did not provide further details in the announcement about the terms of the securities.

Convertible bonds can generally be converted into shares under specified conditions, giving the holder the potential to benefit from an increase in the issuer’s equity value while initially holding debt.

The investment comes as semiconductor companies and cloud providers race to secure technologies needed to support the rapid expansion of generative and agentic AI systems.

Rick Tsai, MediaTek’s vice chairman and CEO, said the investment reinforced a partnership that now spans cloud infrastructure, local AI computing and automotive platforms.

“MediaTek and NVIDIA share a vision for making advanced AI computing pervasive across the technology landscape,” Tsai said.

Nvidia, MediaTek deepen AI PC collaboration

The companies will continue working on several generations of chips for local AI computing.

MediaTek previously collaborated with Nvidia on the GB10 Grace Blackwell Superchip used in Nvidia’s DGX Spark systems. Their partnership is now extending to Nvidia RTX Spark and future products aimed at consumer PCs, AI developers and enterprise workstations.

These systems combine Nvidia GPUs with MediaTek system-on-chip technology, bringing greater AI processing capabilities to local devices.

Nvidia, MediaTek expand automotive AI push

The companies are also developing platforms for AI-powered, software-defined vehicles.

MediaTek’s Dimensity Auto platforms integrate Nvidia technologies for AI and RTX graphics and can work alongside Nvidia DRIVE AGX. The companies said they would continue building on this architecture across future generations of automotive platforms.