Nvidia Invests $3.5 Billion in MediaTek to Expand Beyond GPUs
Nvidia bought $3.5 billion of MediaTek’s zero-coupon convertible bonds, covering about 90% of MediaTek’s $3.9 billion offshore bond offering and marking Nvidia’s biggest investment outside the U.S. Alphabet also participated, though its amount wasn’t disclosed. The deal deepens Nvidia’s partnership with MediaTek across AI PCs, data centers, and vehicles, including MediaTek adopting Nvidia’s NVLink Fusion for custom chips connected to Nvidia rack-scale systems. The investment also fuels “circular financing” concerns because Nvidia gains potential equity upside if MediaTek’s stock rises, while MediaTek is building custom AI accelerator ASICs that could compete with Nvidia GPUs. MediaTek expects this business to top $2 billion in revenue this year and sees an $80 billion market by 2027. Its first AI accelerator ASIC is due for mass production in Q4 2026, with a second-generation chip planned for 2028.
