Article body
Nvidia announced on Monday that it has invested $3.5 billion in convertible bonds issued by Taiwan's MediaTek. This deal is the latest example of Nvidia helping finance businesses that are building products and infrastructure around its technology, a strategy that supports growth in its AI ecosystem but has drawn investor scrutiny due to concerns about circular financing in the AI sector.
As part of the deal, MediaTek will adopt Nvidia's NVLink Fusion platform, allowing customers to develop custom AI chips that can connect to Nvidia-powered AI systems and data centers. The two companies will also extend their collaboration on AI chips for personal computers and continue developing platforms for AI-powered vehicles.
In June, Nvidia unveiled the RTX Spark PC chip, developed in partnership with MediaTek, aiming to "reinvent the PC" for the AI era. This collaboration is expected to be a significant step forward for both companies in advancing AI technology.