Nvidia to invest $3.5 billion in chipmaker MediaTek, expand partnership
NVDA•Deal expands joint chip development
As part of Monday's deal, MediaTek will let customers use Nvidia's technology to design their own AI chips that connect directly to Nvidia's larger computing systems.
The technology, called NVLink Fusion, gives chipmakers ready-made connectors and specialized memory so custom AI chips can plug into Nvidia's larger data-center systems.
It saves customers time and engineering costs, letting them focus on their own chip designs rather than building connections to Nvidia's systems from scratch.
"Nvidia is financing MediaTek so MediaTek can develop products that extend Nvidia's architecture," said Joe Tigay, portfolio manager of the Rational Equity Armor Fund. "That makes it less circular than Nvidia financing a customer—but it is still Nvidia using its balance sheet to accelerate ecosystem growth."
