Jakarta, INTI - Nvidia is investing US$3.5 billion, or approximately IDR 62 trillion, in MediaTek, further strengthening the companies’ collaboration in developing custom chips, AI data center networks, personal computing, and automotive technologies.
As part of the deal, Nvidia will purchase convertible bonds that can later be converted into MediaTek shares. The transaction marks Nvidia’s largest direct investment outside the United States.
The investment forms part of MediaTek’s US$3.9 billion convertible bond offering, which also attracted participation from Alphabet and several other investors, although the individual investment amounts were not disclosed.
Nvidia CEO Jensen Huang said the two companies have already maintained a strong partnership for years. The latest investment is expected to take their collaboration to a new level by aligning their technology strategies and product development roadmaps over the next decade.
“We already have a significant partnership with MediaTek. Today, we’re going to make it much bigger,” Huang said, as reported by Bloomberg.
MediaTek Adopts Nvidia’s NVLink and NVHBM Technologies
Under the expanded partnership, MediaTek will adopt Nvidia’s newly introduced NVLink Fusion and NVHBM technologies. The solutions are designed to enable processors, AI accelerators, memory, and other components to communicate more efficiently within data center environments.
NVLink integration could also make it easier for MediaTek technologies to be incorporated into systems used by hyperscalers. MediaTek aims to help major technology companies develop their own custom chips and data center components, a market also being pursued by Broadcom and Marvell Technology.
“Nvidia is now part of MediaTek’s supply chain, and MediaTek’s XPU is part of ours,” Huang said.
The companies also plan to develop platforms that bring AI capabilities to personal computers and vehicles. MediaTek has previously supported Nvidia in developing the RTX Spark as part of Nvidia’s push into the laptop market.
MediaTek CEO Rick Tsai expects the company’s AI chip business to expand following the agreement, although the growth is likely to take time. MediaTek previously projected that revenue from its AI chip business could reach approximately US$2 billion this year.
The Taiwan-based chipmaker is also targeting a 15% share of the US$80 billion AI chip market next year. To capitalize on growing demand for AI infrastructure, MediaTek plans to expand its workforce and strengthen its capabilities across the sector.
Conclusion
Nvidia’s US$3.5 billion investment in MediaTek marks a significant step in expanding their collaboration across AI chips, data center infrastructure, personal computing, and automotive technologies. By combining Nvidia’s AI ecosystem with MediaTek’s chip expertise, the partnership could strengthen both companies’ positions in the rapidly growing global AI infrastructure market.
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