Nvidia has committed $3.5 billion to Taiwanese chip designer MediaTek through a convertible bond purchase, expanding a partnership between the two companies as they push deeper into artificial intelligence hardware. The deal was announced this week, tying together one of the world’s most valuable chipmakers with a leading mobile and connectivity chip supplier.
The investment takes the form of convertible bonds, an instrument that begins as debt but can later be exchanged for equity in the issuing company. For Nvidia, the structure offers exposure to MediaTek’s growth while securing a closer working relationship with a firm it already collaborates with on chip development.
The two companies have worked together on several fronts, including automotive computing platforms and processors that pair Nvidia’s graphics and AI capabilities with MediaTek’s expertise in low-power system-on-chip design. The expanded arrangement is expected to accelerate joint work on chips built for AI workloads.
MediaTek, headquartered in Hsinchu, is among the largest suppliers of chips for smartphones, smart devices and connected products worldwide. A capital injection of this size gives the company additional resources to invest in research and manufacturing partnerships at a moment when demand for AI-capable silicon continues to climb.
The deal follows a run of large Nvidia commitments across the AI supply chain. The company has been directing capital toward partners and infrastructure projects, including a $500 billion arrangement tied to AI infrastructure financing and a proposed stake in an energy venture supporting a data center campus in Ohio.
Behind the numbers, the tie-up reflects a broader effort by Nvidia to lock in supply and design capacity as competition for AI processing power intensifies. By deepening ties with MediaTek, Nvidia gains a partner capable of producing chips for a wide range of consumer and embedded applications beyond the data center.
Nvidia’s revenue has roughly doubled over the past year as orders for its AI accelerators surged, giving the company ample cash to pursue strategic investments. The MediaTek commitment adds to a growing portfolio of positions Nvidia holds across chipmakers, cloud providers and power suppliers.
For MediaTek, the next step is converting the fresh capital and strengthened alliance into products that reach carmakers, device manufacturers and other customers seeking to embed AI features. Both companies are expected to detail further collaboration on specific chip platforms in the months ahead.