Nvidia ($NVDA) is investing $3.5 billion in MediaTek through convertible bonds as the companies expand their partnership around AI data center infrastructure. MediaTek will adopt Nvidia's NVLink Fusion and newly announced NVHBM technologies as it pursues a larger role designing custom AI chips for major data center operators.
- Nvidia's investment will take the form of bonds convertible into MediaTek shares, according to a joint announcement Monday.
- MediaTek will integrate NVLink Fusion and NVHBM, technologies designed to connect custom processors with Nvidia's broader data center platform.
- MediaTek is targeting as much as 15% of an estimated $80 billion data center segment next year and expects roughly $2 billion in AI chip revenue this year.
- The partnership expands beyond an existing Nvidia-MediaTek relationship in computing products, including Nvidia's RTX Spark platform.
- MediaTek has also secured AI-chip work with Google as it competes with Broadcom and Marvell for custom data center silicon business.
- The agreement follows Amazon's commitment to deploy another 2 million Nvidia components and use Nvidia interconnect technology alongside its internally designed chips.
Relevant Companies
- Nvidia ($NVDA) - Investing $3.5 billion while expanding adoption of its data center interconnect technology.
- Broadcom ($AVGO) - Competes with MediaTek in custom AI and data center chip design.
- Marvell Technology ($MRVL) - Also competes for custom data center silicon business.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
