Nvidia is investing $3.5 billion in Taiwan's MediaTek to deepen AI chip partnership

Nvidia has invested $3.5 billion in MediaTek through convertible bonds as part of an expanded partnership. A convertible bond allows the holder to convert it into shares later on. The companies announced this expanded partnership today. Nvidia regularly purchases stakes in partners as part of technical collaborations. Earlier this year, Nvidia bought $2 billion worth of shares in Marvell Technologies, a competitor of MediaTek.

MediaTek is known for supplying smartphone and connected device processors, and it also has a custom chip design business specializing in artificial intelligence accelerators. Nvidia's AI unit, which is the first focus of the expanded partnership, offers a catalog of on-chip networking technologies for AI accelerator design. MediaTek will offer Nvidia's NVLink Fusion networking technology as an interconnect option for AI racks, which contain not only graphics processing units but also central processing units.

NVLink Fusion enables Nvidia's GPUs and CPUs to exchange data with third-party CPUs and GPUs at speeds 10 times faster than standard PCIe 6.0 implementations. The company's partnership with MediaTek also prioritizes the personal computing market and the auto sector. In 2025, Nvidia launched the DGX Spark workstation, powered by a MediaTek-designed system-on-chip, and the RTX Spark, a laptop and desktop processor.

MediaTek helped develop the RTX Spark's onboard CPUs and certain other components, such as the memory controller. The companies plan to collaborate on multiple future generations of the RTX Spark and DGX Spark. Additionally, MediaTek sells Dimensity Auto systems-on-chips for in-vehicle displays, which include an Nvidia graphics rendering chiplet, and the two companies plan to continue working together on software-defined vehicle chips.