Nvidia CEO Jensen Huang Says His $3.5 Billion MediaTek Deal Is ‘Not Circular’ Because ‘They Do Their Own Business’
Nvidia CEO Jensen Huang clarified on Monday that his company's recent $3.5 billion investment in MediaTek is not a form of circular financing. Nvidia, Huang explained, is not purchasing MediaTek shares, but rather holding convertible bonds issued by the company as part of a $3.9 billion overseas convertible offering. The release of this information does not specify a conversion price, valuation, or resulting stake in the company.
The partnership between Nvidia and MediaTek involves adopting Nvidia's NVLink Fusion technology, co-developing chips for Nvidia's desktop AI machines, and integrating Nvidia graphics into MediaTek's Dimensity Auto platforms. Huang emphasized that MediaTek is a successful and independently profitable fabless designer with a history dating back to 1993, selling chips to various industries unrelated to AI data centers.
This investment is a part of Nvidia's broader efforts to expand beyond pure computing chips and showcase its commitment to AI infrastructure.
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