Nvidia is investing $3.5 billion in convertible bonds issued by MediaTek as the two semiconductor companies expand their partnership across data centres, AI-powered PCs and the automotive sector.

Nvidia is strengthening its ties with Taiwan’s semiconductor industry through a $3.5 billion investment in convertible bonds issued by MediaTek, one of the world’s major chip design companies.

The investment is part of a broader agreement between the two companies aimed at developing technologies for the rapidly expanding artificial intelligence sector. Their collaboration will cover a range of applications, from advanced data centre infrastructure to everyday devices such as personal computers and vehicles. Under the agreement, MediaTek will work with its customers, including major cloud companies and developers of artificial intelligence models, to develop custom-designed chips capable of connecting with Nvidia systems used in advanced data centres. The partnership is expected to help reduce both development time and costs for these solutions.

The agreement between Nvidia and MediaTek focuses on three main areas. The first is AI infrastructure. MediaTek will provide customers with the tools needed to connect customized chips to Nvidia’s large-scale computing systems, supporting the growing demand for specialized hardware capable of handling artificial intelligence workloads. The second area is local computing, in which processing takes place directly on PCs and workstations rather than in data centres. Nvidia and MediaTek will continue working together on chips designed to power a new generation of AI-enabled personal computers. The third focus is the automotive sector. The two companies are collaborating on electronic systems for next-generation vehicles, where increasingly sophisticated software and artificial intelligence are becoming central to how cars operate.

Nvidia founder and CEO Jensen Huang highlighted the broad impact of artificial intelligence across the technology industry, describing AI as a force that is transforming everything from large-scale computing centres to personal computers and automobiles. Huang also described MediaTek as one of the world’s leading semiconductor companies, underlining the strategic importance of the partnership as demand for AI-related technologies continues to expand. MediaTek Vice Chairman and CEO Rick Tsai similarly emphasized the shared ambition of the two companies. According to Tsai, Nvidia and MediaTek are aligned in their goal of bringing advanced artificial intelligence capabilities to a broader range of the technology sector.

The investment and expanded collaboration therefore bring together Nvidia’s expertise in AI computing with MediaTek’s capabilities in chip design, targeting applications that extend well beyond traditional data centre infrastructure.