Nvidia Puts $3.5B Into MediaTek, Pulls It Onto NVLink Fusion

Nvidia said Monday it has invested $3.5 billion in convertible bonds issued by Taiwan's MediaTek, part of a $3.9 billion offering that pulls the chipmaker deeper into Nvidia's AI hardware stack, Bloomberg reported.

Under the partnership, MediaTek adopts NVLink Fusion, the platform Nvidia has been pitching to hyperscalers and cloud providers as a "prevalidated path to develop custom XPUs that can connect to Nvidia NVLink-based, rack-scale AI systems." The two said they will collaborate across three areas: rack-scale AI infrastructure, RTX Spark and DGX Spark local-AI silicon, and the Dimensity Auto platform for AI-defined vehicles.

"MediaTek and NVIDIA share a vision for making advanced AI computing pervasive across the technology landscape," Rick Tsai, MediaTek's Vice Chairman and CEO, said in the joint announcement.

The market read it as more of the same. NVDA closed down about 4.57% at $217.55 on the day, with observers again flagging "circular financing arrangements within the AI chip industry," the pattern in which Nvidia funds companies that in turn build hardware around its stack. It lands the same week Taiwan prosecutors raided Nvidia PCB supplier Unimicron over origin fraud allegations. It fits into a run of Nvidia-adjacent chip stories we have been cataloguing under Chips and Nvidia.