Nvidia invests $3.5B in MediaTek to integrate custom AI chip designs into its data center ecosystem

Nvidia announced a $3.5 billion investment in Taiwanese chipmaker MediaTek, positioning the deal as part of its broader effort to maintain dominance in AI infrastructure amid growing in-house chip development by major cloud providers and AI companies.

As part of the agreement, MediaTek will adopt Nvidia’s technology stack, including NVLink Fusion, to design custom AI chips that can integrate directly into Nvidia-based data centers. This allows customers to deploy custom silicon alongside Nvidia GPUs within the same standardized rack-scale infrastructure.

The partnership reflects a pattern of Nvidia investing in companies that ultimately strengthen its ecosystem, enabling it to cede ground to custom silicon while retaining its role as the foundational platform for AI workloads.

MediaTek separately disclosed in June that its custom data center ASIC business is expected to generate $2 billion in revenue in 2026, with ambitions to expand its share of the market.

Beyond data center chips, Nvidia and MediaTek will continue collaborating on AI-powered automotive platforms and consumer AI PC initiatives, including MediaTek’s work with Nvidia’s RTX Spark and DGX Spark platforms.