Nvidia Corp. plans to invest $3.5 billion into MediaTek through convertible bonds, deepening its ties with the Taiwanese chipmaker as large technology companies increasingly design their own AI silicon2,3.
The investment, first reported by Bloomberg, comes as Nvidia works to remain central to AI infrastructure amid a shift by major cloud providers toward custom chip development. MediaTek forecasts AI chip revenue of about $2 billion this year.
The two companies had already been expanding their collaboration. On August 31, Nvidia Corp. and MediaTek announced a broader partnership to build next-generation AI computing platforms spanning AI infrastructure, local AI computing, and automotive, covering edge-to-cloud computing across all three domains ctx.
ANALYSIS The structure of the deal matters: convertible bonds give Nvidia Corp. a path to an equity stake in MediaTek without an outright acquisition, while providing MediaTek with capital to scale its AI chip business. The $3.5 billion figure dwarfs MediaTek's projected $2 billion in AI chip revenue for this year, underscoring the scale of the commitment relative to MediaTek's current AI business.
TechCrunch characterized the investment as revealing how Nvidia Corp. plans to stay essential to AI infrastructure as Big Tech begins to build its own AI chips.
ANALYSIS By backing MediaTek, a company with deep expertise in system-on-chip design and high-volume manufacturing relationships, Nvidia Corp. gains a partner capable of embedding its technology into a wider range of devices and infrastructure tiers, from edge to data center, rather than competing alone against vertically integrated hyperscalers.