Nvidia invests $3.5 billion in MediaTek convertible bonds, expands AI partnership

September 1, 2026 at 01:40 AM2 min

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Nvidia expanded its partnership with Taiwan-based semiconductor vendor MediaTek on Monday, investing $3.5 billion in convertible bonds. MediaTek will adopt Nvidia's NVLink Fusion platform, enabling cloud providers to integrate custom processors into Nvidia's AI supercomputing ecosystem. The move comes as major Nvidia customers increasingly develop their own custom AI chips.

Key Facts

Nvidia invested $3.5 billion in convertible bonds issued by MediaTek as part of the expanded partnership.
MediaTek will adopt the Nvidia NVLink Fusion platform, which lets cloud providers integrate custom processors directly into Nvidia's AI supercomputing ecosystem.
The two vendors will work together to power PCs, AI developer supercomputers, and enterprise-class workstations that incorporate Nvidia GPUs with MediaTek SoCs.
OpenAI recently introduced its first custom ASIC, Jalapeno, designed to handle AI inference.
Ryan Shrout, president and analyst at Signal65, said Nvidia is ensuring it remains the top-level brand and technology provider for as many AI solutions as possible.

Partnership Expansion

Nvidia on Monday expanded its partnership with MediaTek, a large Taiwan-based semiconductor vendor that designs system-on-chip systems for smartphones, TVs and wireless communications. As part of the expanded partnership, Nvidia invested $3.5 billion in convertible bonds issued by MediaTek. MediaTek will adopt the Nvidia NVLink Fusion platform, which lets cloud providers integrate custom processors directly into Nvidia's AI supercomputing ecosystem. The two vendors will work together to power PCs, AI developer supercomputers and enterprise-class workstations that incorporate Nvidia GPUs with MediaTek SoCs.

Market Context

The partnership comes as a growing number of Nvidia customers, including hyperscalers and frontier model makers, focus more on training and deploying their own ASICs. Most recently, OpenAI introduced its first custom ASIC, Jalapeno, designed to handle AI inference. While Nvidia customers are creating their own chips to rely less on GPUs, many smaller players in the AI market are turning to infrastructure vendors that support ASICs, such as MediaTek. Ryan Shrout, president and analyst at Signal65, said Nvidia is making sure it remains the top-level brand and technology provider for as many solutions on the market as possible.

Strategic Positioning

Chirag Shah, a professor at the University of Washington, said Nvidia sees an opportunity in MediaTek as a partner to help it become more of a platform provider for smaller AI vendors. Shah added that by doing this, Nvidia becomes even more of a service and platform provider, competing with Google, OpenAI and others that have been taking Nvidia chips and building platforms on them. Nvidia also sees integrating its technology with MediaTek as a way to continue pushing AI factories, which it has positioned as the next stage beyond traditional data centers.