NVIDIA Invests $3.5 Billion in MediaTek to Deepen AI Chip Strategic Cooperation
NVIDIA has once again partnered with a key technology supplier, this time collaborating with Taiwan-based chipmaker MediaTek. The AI chip giant has committed to purchasing $3.5 billion worth of MediaTek bonds, stating this move is part of “deepening long-term cooperation between the two companies to jointly build the next-generation AI computing platform.”.
NVIDIA stated that both parties will combine NVIDIA’s expertise in accelerated computing, AI, graphics processing, and software with MediaTek’s strengths in customized chips, high-performance computing (HPC), system-on-chip (SoC) design, and advanced packaging.
MediaTek Deputy Chairman and CEO Mark Liu stated, “In the era of physical AI, NVIDIA’s investment strengthens a collaboration encompassing cloud AI infrastructure, local AI computing, and the automotive sector.” Liu added that this will integrate NVIDIA’s accelerated computing and AI software ecosystem with MediaTek’s AI technology portfolio and customized chip capabilities.
In recent years, MediaTek has transformed from a manufacturer primarily supplying mid-to-low-end smartphone chips into a key player across multiple fields, including smartphones, AI data centers, automotive, and the Internet of Things.
Yuanta Securities stated that the closer partnership between the two parties will help MediaTek expand its business from edge AI to data center infrastructure, edge AI computing, and automotive platforms.
Customized AI Infrastructure
Moreover, this massive bond purchase also demonstrates NVIDIA’s long-term commitment. Yuan Da Securities pointed out that the most crucial part of this collaboration is MediaTek’s participation in NVIDIA’s NVLink Fusion initiative, which enables MediaTek to support the design of customized AI chips for clients while integrating into NVIDIA’s AI infrastructure.
Currently, NVIDIA is the world’s highest-valued company, with a market capitalization of $5 trillion. The company has been actively investing in upstream and downstream partners, creating what can be described as an investment boom. Inevitably, this latest “deepened” collaboration carries the risk of conflicting with other NVIDIA investment strategies. For instance, NVIDIA previously reached a $2 billion partnership with Marvell, which also heavily focused on NVLink Fusion.
On Tuesday, MediaTek’s stock halted trading in the Taipei stock market after hitting the daily limit up of 10%, closing at NT$4,315 (approximately $136.05).
Meanwhile, another AI chip collaboration involving Nvidia appears to be in the works. According to South Korean media reports, Nvidia CEO Jensen Huang met with Park Sung-hyun, the head of Korean AI chip startup Rebellions, at the company’s headquarters on Monday, discussing potential cooperation.
One of Rebellions’ shareholders includes SK Hynix, a subsidiary of SK Telecom. The company recently reached an AI inference collaboration with SK Telecom and ARM earlier this year and is working with SK Telecom to develop agent infrastructure.