Nvidia invests $3.5 billion in MediaTek AI chip deal

Nvidia invests $3.5 billion in MediaTek AI chip deal

Tue, September 1, 2026 at 3:57 PM GMT+3 2 min read

• NVDA +3.21%
• 2454.TW -0.93%

MediaTek announced a partnership with Nvidia on Monday backed by a $3.5 billion convertible bond investment, news that pushed MediaTek shares 10% higher on Tuesday and capped a gain of close to 200% for the Taiwanese chipmaker over the course of this year.

The deal centers on MediaTek adopting Nvidia's NVLink Fusion platform, which lets hyperscalers and other technology companies build custom AI chips that integrate with Nvidia's data center infrastructure, the companies said. The two firms will also collaborate on chips for PCs and automotive platforms.

Nvidia founder and CEO Jensen Huang called MediaTek "one of the world's great semiconductor companies" in a press release issued Monday. MediaTek vice chairman and CEO Rick Tsai said Nvidia's investment "strengthens a collaboration that spans cloud AI infrastructure, local AI computing and automotive in the era of physical AI."

NVLink Fusion gives customers a foundation for building custom accelerator chips — combining NVLink connectivity, high-bandwidth memory, advanced packaging, and rack-scale integration — so engineering resources can focus on differentiated compute rather than surrounding infrastructure, the companies said. The platform is part of Nvidia's broader strategy to remain central to AI infrastructure even as large customers move toward designing their own chips.

The partnership also extends the companies' existing collaboration on Nvidia RTX Spark and DGX Spark chips for consumer and enterprise PCs, as well as AI-powered automotive platforms built around MediaTek's Dimensity Auto line. MediaTek had previously partnered with Alphabet's Google and collaborated with Nvidia on the GB10 Grace Blackwell Superchip that powers the DGX Spark developer computer, the companies said.

MediaTek holds the top position in global smartphone chip sales by market share, per Counterpoint Research data cited by CNBC, putting it in direct competition with Qualcomm in that segment. The company has been working to expand into data center chips, where it faces competition from Broadcom and Marvell Technology.

MediaTek disclosed in June that its custom AI chip division is on track to contribute $2 billion to this year's revenue, and that the broader opportunity in the space could reach $80 billion by 2027, the companies said. Nvidia has been investing across the AI supply chain, including in power infrastructure developer Lancium and chip designer Marvell Technology.