A Strategic Bet on Custom AI Chips
Nvidia has agreed to invest $3.5 billion in MediaTek through convertible bonds, in a deal announced Monday that sent the Taiwanese chipmaker's shares up 10% on Tuesday. The investment caps a stunning year for MediaTek, whose stock has gained roughly 200% in 2026.
At the heart of the partnership is MediaTek's adoption of Nvidia's NVLink Fusion platform — a system that allows hyperscalers and other technology companies to build custom AI accelerator chips that integrate with Nvidia's data center infrastructure. The platform provides NVLink connectivity, high-bandwidth memory, advanced packaging, and rack-scale integration, so engineering teams can focus on differentiated compute rather than surrounding infrastructure.
Beyond Data Centers
The deal also extends the companies' existing collaboration to consumer and enterprise PCs (through Nvidia RTX Spark and DGX Spark chips) and to automotive platforms built around MediaTek's Dimensity Auto line. MediaTek had previously partnered with Alphabet's Google and collaborated with Nvidia on the GB10 Grace Blackwell Superchip that powers the DGX Spark developer computer.
Nvidia founder and CEO Jensen Huang called MediaTek "one of the world's great semiconductor companies" in the press release. MediaTek vice chairman and CEO Rick Tsai said the investment "strengthens a collaboration that spans cloud AI infrastructure, local AI computing and automotive in the era of physical AI."
Why This Matters for the AI Chip Landscape
The investment reveals Nvidia's strategy for maintaining its dominance in AI infrastructure as large customers — including Google, Amazon, and Microsoft — increasingly design their own custom chips. By providing the platform and connectivity layer through NVLink Fusion, Nvidia ensures it remains central to the AI supply chain even when competitors build their own silicon.
MediaTek holds the top position in global smartphone chip sales by market share, according to Counterpoint Research data. The company disclosed in June that its custom AI chip division is on track to contribute $2 billion to this year's revenue, with the broader opportunity in the space estimated to reach $80 billion by 2027.
The deal is part of Nvidia's broader investment spree across the AI supply chain, which includes stakes in power infrastructure developer Lancium and chip designer Marvell Technology.
