Stock Markets August 31, 2026 08:46 AM

Nvidia and MediaTek Deepen AI Collaboration; Nvidia Commits $3.5 Billion via Convertible Bonds

Expanded agreement centers on NVLink Fusion-based XPUs, rack-scale AI systems, PCs and automotive platforms

By Hana Yamamoto
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Nvidia and MediaTek have broadened their collaboration to accelerate AI computing across cloud infrastructure, local computing and automotive segments. MediaTek will adopt Nvidia's NVLink Fusion platform to enable customers to create custom XPUs that integrate into Nvidia NVLink-connected, rack-scale AI environments. As part of the agreement, Nvidia has purchased $3.5 billion in convertible bonds issued by MediaTek.

Nvidia and MediaTek Deepen AI Collaboration; Nvidia Commits $3.5 Billion via Convertible Bonds
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Key Points

  • Nvidia has invested $3.5 billion in convertible bonds issued by MediaTek as part of the expanded collaboration.
  • MediaTek will adopt Nvidia's NVLink Fusion platform to enable customers to design custom XPUs and integrate them into NVLink-connected, rack-scale AI factories, targeting hyperscalers, cloud service providers and frontier model developers.
  • The partnership covers AI infrastructure, local computing (including continued development of Nvidia RTX Spark and DGX Spark PC chips) and automotive platforms (integrating Nvidia technologies into MediaTek Dimensity Auto and interoperability with Nvidia DRIVE AGX).

Nvidia and MediaTek on Monday announced an expanded strategic collaboration focused on building AI computing platforms across three principal domains: AI infrastructure, on-device or local computing, and automotive systems.

Under the agreement, MediaTek will adopt Nvidia's NVLink Fusion platform to give hyperscalers, cloud service providers and frontier model developers a pathway to develop bespoke XPUs - multi-die accelerator designs - and to integrate those custom chips into Nvidia NVLink-connected, rack-scale AI factories.

As a financial component of the expanded partnership, Nvidia has invested $3.5 billion by purchasing convertible bonds issued by MediaTek.

The collaboration is structured around three core areas of work. For AI infrastructure, MediaTek will participate in Nvidia's NVLink Fusion ecosystem so customers can design custom AI infrastructure that is compatible with Nvidia rack-scale systems and AI factory configurations. This work is intended to allow third parties to develop accelerators that slot into Nvidia-connected, rack-scale deployments.

In the PC and local computing space, the two companies will continue joint development across multiple generations of Nvidia RTX Spark and DGX Spark PC chips. Those chips are intended to power consumer PCs, AI development workstations and enterprise-class developer supercomputers.

On the automotive front, MediaTek and Nvidia will further co-develop platforms for AI-driven, software-defined vehicles. MediaTek's Dimensity Auto platforms already integrate Nvidia technologies to provide in-vehicle AI and Nvidia RTX graphics for intelligent cockpits and are capable of working alongside Nvidia DRIVE AGX.

The NVLink Fusion platform itself is described as a foundation for multi-die XPU development. The platform includes the Nvidia NVLink Fusion chiplet, NVLink-C2C for connectivity between XPUs and Nvidia Rosa CPUs, and Nvidia NVHBM for memory capabilities.

"AI is transforming every computing platform - from the world's largest AI factories to the PC and the car," said Jensen Huang, founder and CEO of Nvidia. "MediaTek is one of the world's great semiconductor companies, with exceptional expertise in system-on-chip design, connectivity, leading performance and power efficiency. Together, we're building platforms that bring Nvidia accelerated computing to new markets and give customers the freedom to create differentiated AI systems at enormous scale."

"MediaTek and Nvidia share a vision for making advanced AI computing pervasive across the technology landscape," said Rick Tsai, vice chairman and CEO of MediaTek. "Nvidia's investment strengthens a collaboration that spans cloud AI infrastructure, local AI computing and automotive in the era of physical AI."

The two firms have a history of technical collaboration. MediaTek worked with Nvidia on the GB10 Grace Blackwell Superchip that powers the Nvidia DGX Spark, and the companies have extended their cooperation with Nvidia RTX Spark to power the next generation of consumer PCs.


This expanded partnership aims to align system-on-chip expertise and accelerator connectivity into a cohesive roadmap spanning data center racks, desktop and laptop systems, and vehicle cockpits. The announcement combines a technical roadmap - NVLink Fusion and multi-generation chip work - with a capital commitment through the convertible bond purchase.

Details on implementation timetables, specific customer deployments or commercial terms of the convertible bonds were not disclosed in the announcement.

Risks

  • The companies did not disclose implementation timelines or specific commercial terms, leaving the schedule and financial implications for customers and partners unspecified.
  • The announcement does not provide detail on the pace of customer adoption for custom XPUs or rack-scale integrations, creating uncertainty about near-term deployment outcomes.
  • No additional information was provided about conversion terms or conditions of the $3.5 billion in convertible bonds, which leaves market and financial impacts unquantified in the announcement.

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