Nvidia Invests $3.5 Billion in MediaTek for AI Data Centers

Nvidia Corp. is investing $3.5 billion in MediaTek Inc. through the purchase of bonds convertible into shares. The investment expands a partnership focused on data center connectivity, enabling MediaTek to integrate Nvidia's NVLink Fusion and NVHBM technology to help data center owners create custom components.

This move is part of a broader strategy by Nvidia to ensure the AI hardware ecosystem remains centered on its standards, even as customers develop their own chips. The agreement follows a similar arrangement with Amazon.com Inc., which pledged to deploy 2 million additional Nvidia components and use Nvidia connection technology with its own in-house chips.

MediaTek is using the partnership to reduce its reliance on the smartphone market. The company expects AI chip revenue of approximately $2 billion this year and aims to capture 15% of the $80 billion data center market next year.