Nvidia is investing $3.5 billion in Taiwanese chipmaker MediaTek as the companies expand their partnership in custom artificial intelligence chips and data center infrastructure.
Under the expanded partnership, MediaTek will use Nvidia technology to develop custom processors that can connect directly with Nvidia-based data center systems. The arrangement gives cloud companies and AI developers another way to combine their own chips with Nvidia’s infrastructure.
The move comes as major technology companies, including Amazon, Google, Microsoft, OpenAI and Anthropic, develop custom chips to reduce their reliance on Nvidia GPUs.
Rather than competing directly with every custom processor, Nvidia is expanding its role as the underlying infrastructure platform for those chips.
MediaTek Joins Nvidia’s NVLink Ecosystem
MediaTek will gain access to Nvidia’s NVLink Fusion platform, including NVLink technology, which enables high-speed communication between different processors within AI data centers.
This will allow MediaTek to continue developing custom chips for cloud providers and AI companies while connecting them with Nvidia’s rack-scale infrastructure and other data center technologies.
Nvidia senior director Dion Harris said the company is increasingly positioning itself as an AI infrastructure provider rather than solely a chipmaker.
Nvidia Expands Custom AI Chip Strategy
The investment follows Nvidia’s partnership with Amazon Web Services, which plans to add 2 million Nvidia GPUs and incorporate NVLink Fusion into its infrastructure.
MediaTek has also been expanding its custom data center ASIC business. The company said in June that it expects the business to generate $2 billion in revenue during 2026 and plans to increase its presence in the custom AI chip market.
MediaTek has not disclosed the companies using its custom AI chips.
Partnership Also Covers PCs and Cars
The Nvidia-MediaTek partnership extends beyond large data centers.
The companies already work together on DGX Spark, Nvidia’s compact desktop AI system for developers, and are expanding their collaboration through RTX Spark for AI-powered consumer PCs.
Their cooperation also covers automotive technology. MediaTek’s automotive platforms use Nvidia RTX graphics for intelligent vehicle cockpits and work with Nvidia Drive AGX for autonomous driving applications.
The companies said they will continue developing platforms for software-defined vehicles powered by AI.
Nvidia CEO Jensen Huang said AI is reshaping computing across data centers, PCs and vehicles, with the expanded partnership allowing customers to develop customized systems while continuing to use Nvidia’s accelerated computing infrastructure.
