Nvidia said Monday that it was investing $3.5 billion in Taiwan’s MediaTek in its latest attempt to widen financial ties across the AI industry. The investment is part of MediaTek’s record $3.9 billion overseas convertible bond offering. MediaTek also said Alphabet took part in the offering, but did not disclose the amount.
“This is not circular because obviously they do their own business and we do our own business,” Nvidia CEO Jensen Huang said in an interview with Bloomberg TV about its investment in MediaTek.
As part of the deal, MediaTek will let customers use Nvidia’s technology to design their own AI chips that connect directly to Nvidia’s larger computing systems. The technology, called NVLink Fusion, gives chipmakers ready-made connectors and specialized memory so custom AI chips can plug into Nvidia’s larger data center systems. It saves time and engineering costs by allowing companies to focus on their own chip designs rather than building connections to Nvidia’s systems from scratch.
READ: Nvidia pauses AI cloud financing deals amid control, antitrust concerns (August 28, 2026)
“Nvidia is financing MediaTek so MediaTek can develop products that extend Nvidia’s architecture,” said Joe Tigay, portfolio manager of the Rational Equity Armor Fund. “That makes it less circular than Nvidia financing a customer—but it is still Nvidia using its balance sheet to accelerate ecosystem growth.”
“AI is transforming every computing platform — from the world’s largest AI factories to the PC and the car,” Huang said. “MediaTek is one of the world’s great semiconductor companies, with exceptional expertise in system-on-chip design, connectivity, leading performance and power efficiency. Together, we’re building platforms that bring NVIDIA accelerated computing to new markets and give customers the freedom to create differentiated AI systems at enormous scale.”
READ: Nvidia in talks to acquire Hugging Face for nearly $13 billion (August 27, 2026)
“MediaTek and NVIDIA share a vision for making advanced AI computing pervasive across the technology landscape,” said Rick Tsai, vice chairman and CEO of MediaTek. “NVIDIA’s investment strengthens a collaboration that spans cloud AI infrastructure, local AI computing and automotive in the era of physical AI. By combining NVIDIA’s leadership in accelerated computing and AI software ecosystem with MediaTek’s expertise in a diverse AI technology portfolio from edge to cloud, and our leadership position in custom silicon, we can accelerate innovation for our customers.”
Nvidia and MediaTek will keep working together on chips for personal computers and technology for AI-powered vehicles. The deal builds on an already existing relationship between the two companies. In June, the companies teamed up to launch the RTX Spark PC chip, aiming to bring AI features directly to laptops and desktops.