Key highlights:

  • Nvidia is investing $3.5 billion in MediaTek, its largest investment outside the US
  • MediaTek will use Nvidia’s NVLink Fusion technology to build custom AI processors that can connect to Nvidia-powered data center systems
  • Nvidia’s strong Q2 earnings have provided the firepower for its streak of investments

Nvidia has announced a $3.5 billion investment in Taiwanese chipmaker MediaTek through convertible bonds, deepening a partnership designed to keep Nvidia in pole position in the AI chip race. The move comes as major technology companies are racing to develop their own processors to reduce their dependence on Nvidia’s GPUs.

Nvidia wants custom chips in its ecosystem

The investment forms part of MediaTek’s record $3.9 billion overseas convertible bond offering, with Alphabet also participating for an undisclosed amount. Nvidia’s investment gives it potential equity exposure to MediaTek while providing the Taiwanese chip designer with capital to expand its AI business. 

More importantly, the deal will see MediaTek adopt Nvidia’s NVLink Fusion technology, allowing customers to develop custom AI processors. The move provides Nvidia a way to benefit even when customers opt for specialized chips over ready-made GPUs.

“By combining NVIDIA’s leadership in the 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,” said MediaTek CEO Rick Tsai.

Companies including Amazon, Google, Microsoft, OpenAI and Anthropic have begun investing in custom chips as they look for greater control over AI computing costs and performance. Meanwhile, Nvidia’s strategy is focused on making its architecture the infrastructure surrounding the custom chips rather than supplying the processors themselves.

Both companies are also expanding their collaboration beyond data centers. Nvidia and MediaTek disclosed it will continue working on AI-powered personal computer chips and automotive platforms.

Nvidia is on an investment spree

While the MediaTek deal is Nvidia’s largest investment outside the US, the California-based chip giant is on a red-hot streak of writing checks. The MediaTek deal comes on the heels of Nvidia striking a $12.9 billion deal to acquire Hugging Face.

Previously, Nvidia agreed to provide up to $105 billion in financial backing and guarantees for a massive AI data center campus in Pike County, Ohio. Back in August, Nvidia announced a partnership with six of Wall Street’s largest asset managers to treat AI data centers as a new investable asset class.

The move will seek to mobilize over $500 billion in third-party institutional capital to fund AI data center construction. Under the partnership, Nvidia will act as a backstop, guaranteeing up to 25% of the residual value of the chips to de-risk loans for banks and developers.

The red-hot streak comes as Nvidia Q2 2026 earnings beat Wall Street estimates, with the company’s revenue in Q2 reaching $96 billion. Meanwhile, Nvidia paused some of its AI cloud revenue-sharing deals over antitrust concerns, but the announcement did little to hurt the company’s share price.