Nvidia Invests $3.5 Billion in MediaTek to Expand Beyond GPUs

In brief

• Nvidia wrote MediaTek a $3.5 billion check for convertible bonds, its largest direct investment outside the US, covering about 90% of MediaTek's record $3.9 billion offshore bond offering.
• Alphabet bought in too without saying how much, and MediaTek shares hit their daily limit Tuesday, up 10% in Taipei trading.
• MediaTek is adopting Nvidia's NVLink Fusion platform and expects its AI chip business to clear $2 billion in revenue this year.

Nvidia just wrote its biggest check outside the United States: $3.5 billion for MediaTek's convertible bonds in a deal announced Monday. The purchase covers roughly 90% of MediaTek's $3.9 billion offshore bond offering, which MediaTek called the largest of its kind in the island's capital-market history.

Google’s parent company, Alphabet, also bought in, though neither company said how much Google's parent chipped in.

The deal deepens a partnership that already touches PCs, data centers, and cars. MediaTek will adopt Nvidia's NVLink Fusion platform, wiring custom-built chips straight into Nvidia's rack-scale computing systems, according to the companies' joint statement. Three areas get top billing: AI infrastructure, edge AI, and software-defined vehicles.