Nvidia Invests $3.5 Billion in MediaTek, Extending NVLink to Custom AI Chips
Updated
Updated · TechCrunch · Aug 31
Nvidia Invests $3.5 Billion in MediaTek, Extending NVLink to Custom AI Chips
3 articles · Updated · TechCrunch · Aug 31
Summary
$3.5 billion from Nvidia gives MediaTek access to NVLink Fusion, letting its custom AI chips plug directly into Nvidia-based data centers.
The deal helps Nvidia stay central as Amazon, Google, Microsoft, OpenAI and Anthropic push in-house chips, shifting competition from standalone GPUs to broader AI infrastructure.
MediaTek can use Nvidia’s rack-scale architecture to build ASICs for cloud and AI customers, a business it said in June could generate $2 billion in 2026 revenue.
The partnership also widens existing ties in AI PCs, DGX Spark and software-defined vehicles, underscoring Nvidia’s strategy of funding companies that feed back into its ecosystem.
Is Nvidia's $3.5 billion investment in MediaTek a brilliant strategy to secretly tax rivals building custom AI chips?
Could MediaTek's adoption of NVLink Fusion lock hyperscalers back into Nvidia's ecosystem despite their efforts to escape GPUs?
With custom AI chips costing up to $1 billion, will Nvidia's infrastructure pivot ultimately monopolize the booming ASIC market?
Nvidia Invests $3.5B in MediaTek: The High-Stakes Race for Custom AI Chips and Rack-Scale Dominance
Overview
In August 2026, Nvidia invested $3.5 billion in MediaTek’s convertible bonds, giving MediaTek capital for expansion without immediate cash strain. This move lets Nvidia hold a safer position while keeping the option to benefit from MediaTek’s growth in custom silicon. As cloud giants build their own chips to reduce reliance on Nvidia, Nvidia responds by integrating its NVLink Fusion platform into MediaTek’s designs, ensuring custom chips still connect to Nvidia’s ecosystem. MediaTek, in turn, can offer faster, prevalidated solutions to hyperscalers. However, both companies remain vulnerable to supply chain disruptions, as they rely on third-party foundries for manufacturing.