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NVIDIA invests $3.5 billion in MediaTek! Pushing into the ASIC market—Huang Jensen praises one of the world’s most important semiconductor companies

NVIDIA (NVIDIA) and MediaTek (MediaTek) have further upgraded their partnership. On August 31, NVIDIA announced that it will invest $3.5 billion (about NT$1 trillion) to subscribe for convertible corporate bonds issued by MediaTek. The two sides also expanded their long-term cooperation, with the scope extending from end-user computing to AI data centers, in-house AI chips, PCs, and smart automobiles. The significance of this deal is not only that NVIDIA takes a stake in Taiwan’s leading IC design company; it also represents that MediaTek is further moving into the AI infrastructure market, which is growing the fastest. By doing so, MediaTek becomes an important chip design partner in NVIDIA’s NVLink Fusion ecosystem. NVIDIA invests $3.5 billion; MediaTek joins NVLink Fusion. According to NVIDIA’s announcement, MediaTek will adopt the NVIDIA NVLink Fusion platform to help hyperscale cloud operators, cloud service providers, and cutting-edge AI model companies develop customized XPU, and to integrate these chips into rack-level AI Factories that use NVIDIA NVLink.

NVIDIA isn’t just selling GPUs—it’s moving to surround AI ASICs. As major cloud players such as Google and Amazon actively develop their own AI ASICs, AI data centers are gradually taking shape along two paths: one led by NVIDIA GPUs, and the other by technology giants designing their own customized accelerators. NVIDIA launched NVLink Fusion this year, which to some extent “opens” its own interconnects and rack-level infrastructure to non-NVIDIA XPUs. Even if customers don’t use NVIDIA GPUs as the core compute engine for all workloads, they may still use NVIDIA’s NVLink, networking, CPU, memory, and rack-level architecture. MediaTek, on the other hand, can play the role of helping customers truly design, package, and mass-produce the customized chips.

Jensen Huang: AI is changing every computing platform

NVIDIA CEO Jensen Huang said that AI is changing all computing platforms—from the world’s largest AI Factories to PCs and even automobiles—and described MediaTek as one of the world’s important semiconductor companies with capabilities in SoCs, interconnect technology, performance, and energy efficiency.

MediaTek deputy board chairman and CEO Chih-Lih Tsai said that NVIDIA’s investment strengthens cooperation between the two companies across cloud AI infrastructure, on-premises AI computing, and automobiles.

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