On August 31, 2026, NVIDIA announced a $3.5 billion investment in convertible bonds issued by MediaTek, alongside a deepened partnership spanning three areas: AI infrastructure, local AI computing and automotive. It is NVIDIA’s largest direct investment outside the United States.
The technical core of the deal is MediaTek’s adoption of the NVIDIA NVLink Fusion platform. NVLink Fusion lets a partner design a custom AI accelerator with prevalidated integration into NVIDIA’s rack-scale systems, which shortens the path from chip design to production deployment. The other two strands are local AI computing, where MediaTek works with NVIDIA on the PC silicon behind NVIDIA RTX Spark and DGX Spark, and AI-powered software-defined vehicles.
Jensen Huang described MediaTek as “one of the world’s great semiconductor companies, with exceptional expertise in system-on-chip design, connectivity, leading performance and power efficiency.” MediaTek chief executive Rick Tsai said “NVIDIA’s investment strengthens a collaboration that spans cloud AI infrastructure, local AI computing and automotive in the era of physical AI.”
The structure is worth reading carefully. A convertible bond is not an acquisition and not a joint venture; it is capital that converts to equity only if MediaTek’s shares appreciate, so NVIDIA gets upside exposure and ecosystem alignment without consolidating a competitor’s SoC business. It is also a further example of NVIDIA financing the companies that build around its platform, a pattern that broadens the ecosystem and simultaneously invites scrutiny about how much of the demand for NVIDIA technology NVIDIA is itself underwriting.