Nvidia to Invest $3.5B in MediaTek, Deepening AI Chip Collaboration

On August 31, Nvidia (NVDA.O) will invest $3.5 billion in MediaTek, further deepening their collaboration. Nvidia will purchase bonds convertible into MediaTek shares and is working to persuade more companies to develop chips that can access its dominant data center ecosystem.

Under the arrangement, MediaTek will adopt NVLink Fusion and the latest NVHBM technology, aimed at enabling smoother communication among various components in data centers. MediaTek is seeking to challenge Broadcom (AVGO.O) and Marvell Technology (MRVL.O) by helping data center operators build customized components.

Earlier, Amazon (AMZN.O) also announced a similar partnership, agreeing to deploy an additional 2 million Nvidia components and committing to use Nvidia's interconnect technology in its custom chips.

[TechFlow]