Nvidia has agreed to invest $3.5 billion in semiconductor designer MediaTek through convertible bonds, according to a joint statement released on Monday, August 31, 2026. The financial injection aims to deepen the strategic alliance between the two companies as they target the rapidly growing infrastructure market for artificial intelligence data centers.
Under the terms of the deal, MediaTek will adopt Nvidia’s proprietary NVLink Fusion and newly introduced NVHBM technologies. These interconnect systems allow custom-designed processors to link directly into Nvidia’s broader data center architecture, giving hyperscale cloud providers higher bandwidth and improved efficiency when running massive AI workloads.
The investment marks a significant push by MediaTek to expand beyond consumer electronics and mobile processors into enterprise AI hardware. MediaTek expects to generate approximately $2 billion in AI chip revenue this year and is targeting up to 15% of an estimated $80 billion custom data center chip market next year. The Taiwanese company has already secured AI chip design projects with Google, putting it into direct competition with established custom silicon rivals such as Broadcom and Marvell Technology.
The agreement builds on existing collaboration between the two companies in personal computing, including work on Nvidia’s RTX Spark platform. It comes amid broader momentum across the AI hardware ecosystem, highlighted by Amazon’s recent commitment to deploy an additional 2 million Nvidia components while integrating Nvidia interconnect technology with its internal chip designs.