Key facts
- Nvidia invested $3.5 billion in MediaTek's convertible bonds.
- This investment represents Nvidia's largest direct investment outside the U.S.
- The deal covers approximately 90% of MediaTek's $3.9 billion offshore bond offering.
- Alphabet also invested in MediaTek's offering.
- MediaTek shares surged 10% in Taipei trading.
- MediaTek will integrate Nvidia's NVLink Fusion platform into its custom chips.
Nvidia has made its largest investment outside the United States, committing $3.5 billion to MediaTek's convertible bonds. This investment covers approximately 90% of MediaTek's record $3.9 billion offshore bond offering. Alphabet, Google's parent company, also participated in the offering, though the amount was not disclosed. The deal significantly deepens an existing partnership between the two companies, focusing on areas such as AI infrastructure, edge AI, and software-defined vehicles. MediaTek plans to adopt Nvidia's NVLink Fusion platform, integrating custom-built chips into Nvidia's rack-scale computing systems. MediaTek anticipates its AI chip business will generate over $2 billion in revenue this year, with ambitions to capture 15% to 20% of an $80 billion addressable market by 2027. Nvidia CEO Jensen Huang clarified that the investment is not circular financing, as Nvidia sells chips separately and gains equity upside if MediaTek's stock performs well. MediaTek's first AI accelerator ASIC is slated for mass production in the fourth quarter of 2026.