Nvidia and MediaTek confirmed Monday that Nvidia has put $3.5 billion into MediaTek convertible bonds, putting an official number on a figure earlier reports had called unconfirmed. The expanded partnership covers AI data-center infrastructure, PCs and cars, and builds on chip collaborations the two companies already had running.
Nvidia and MediaTek confirmed Monday that Nvidia has invested $3.5 billion in convertible bonds issued by MediaTek. That puts a firm figure on a deal earlier reports had placed at an unconfirmed $3.5 billion to $4 billion. The announcement expands a collaboration already spanning AI data centers, PCs and cars.
Jensen Huang, Nvidia's founder and CEO, called MediaTek "one of the world's great semiconductor companies". MediaTek CEO Rick Tsai said the investment strengthens a collaboration spanning cloud AI infrastructure, local computing and automotive.
Deal spans data centers, PCs and cars
The expanded partnership covers three areas: AI infrastructure, local computing and automotive. MediaTek will adopt Nvidia's NVLink Fusion platform to help hyperscalers and cloud providers build custom XPUs that plug into Nvidia's rack-scale AI factories, the companies said. On PCs, the two will keep developing the NVIDIA RTX Spark platform for Windows 11 AI laptops, with the first RTX Spark laptops due on shelves in fall 2026. In cars, MediaTek's 3-nanometer Dimensity AX C-X1 platform feeds into Nvidia-powered, AI-enabled cockpit systems.
MediaTek chases the custom-chip market
MediaTek's board approved $5 billion in discretionary financing on July 31, 2026, to fund its push into data-center AI chips. The company's AI chip business is projected to generate more than $2 billion in revenue in 2026, with its first custom ASIC due off production lines in Q4 2026 and a second slated for 2028. The two companies already collaborated on the GB10 Grace Blackwell Superchip that powers Nvidia's DGX Spark. MediaTek also runs an in-house AI factory on Nvidia's DGX SuperPOD systems that processes about 60 billion inference tokens a month.
The broader addressable market for custom AI chips is projected to reach about $80 billion by 2027.
Sources: Investing.com, Crypto Briefing
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