Nvidia Invests $3.5 Billion in MediaTek to Expand AI Partnership

Nvidia and MediaTek have announced a significant expansion of their partnership, centered on a $3.5 billion investment from Nvidia into the Taiwanese semiconductor company. The deal, revealed on September 1, 2026, deepens a collaboration focused on building next-generation AI computing platforms that span from cloud data centers to personal computers and vehicles. Under the agreement, Nvidia will purchase convertible bonds issued by MediaTek, representing the chipmaker's largest direct investment outside the United States. The purchase accounts for roughly 90% of MediaTek's record $3.9 billion offshore bond offering. Alphabet, Google's parent company, also participated in the bond offering, though the size of its investment was not disclosed. The announcement triggered a strong market reaction, with MediaTek's shares hitting their daily limit of 10% in Taipei trading on Tuesday. The core of the expanded partnership involves MediaTek adopting Nvidia's NVLink Fusion platform. This technology provides a prevalidated foundation for customers to design custom AI accelerators, known as XPUs, that can integrate directly into Nvidia's rackscale AI factory systems.