- NVIDIA announced a $3.5 billion investment in MediaTek through convertible bonds and expanded its partnership with the chip designer.
- CEO Jensen Huang stated Nvidia is “welcoming” custom AI chips, making it easier for them to connect to its infrastructure via the new NVLink Fusion platform.
- The partnership will also support the development of AI-focused PC chips, aiming for a “reinvention of the Windows PC for the age of agents.”
- Nvidia’s stock rose about 1% in midday trade, defying a broader market downturn.
Nvidia defied the broader market downturn in midday trade on Monday after announcing a $3.5 billion investment in MediaTek through convertible bonds and expanding its partnership with the chip designer. In an interview with Bloomberg, CEO Jensen Huang said Nvidia is “not intimidated” by the rise of custom AI chips, adding that specialized processors are already in the market. “We’re not intimidated by this. We’re in fact welcoming it,” Huang stated.
Consequently, the new partnership includes support for MediaTek’s custom XPUs to plug into Nvidia’s NVLink-connected, rack-scale AI systems through the NVLink Fusion platform. Huang said that the companies are also developing AI-focused PC chips, including technology aimed at a “reinvention of the Windows PC for the age of agents.”
Huang explained that NVLink Fusion is designed to reduce the complexity of developing and deploying custom AI accelerators. He added that this would allow customers to focus on designing specialized compute while relying on Nvidia and MediaTek for much of the surrounding infrastructure. “If they would like to put a specialized XPU into a data center, why not make it easier for them to connect it to the NVIDIA infrastructure?” Huang said.
The companies also extended their collaboration into automotive technology, combining MediaTek’s automotive SoCs with Nvidia’s accelerated computing and AI technologies for software-defined vehicles. Meanwhile, Huang stated that Nvidia’s GPUs remain general-purpose accelerators capable of handling a broad range of AI workloads, from data processing and model training to inference and agentic AI.
On Stocktwits, retail sentiment around Nvidia continued to trend in ‘extremely bullish’ territory over the past day. Some traders viewed the MediaTek investment as a strategic move to secure supply and strengthen Nvidia’s position across the custom-chip and networking ecosystem.
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