Nvidia invested $3.5 billion in Taiwanese chip maker MediaTek. As part of the partnership, MediaTek will be able to use Nvidia technology to develop its own AI chips, which will be used in data centers based on Nvidia technology and infrastructure. The deal comes as a growing number of companies, including Amazon, Google, Microsoft, OpenAI and Anthropic, are developing their own solutions to reduce their reliance on Nvidia GPUs.
Image source: NVIDIA
Such deals allow Nvidia to maintain its leading position as a major data center infrastructure provider. “Nvidia is an artificial intelligence infrastructure company“,” said Dion Harris, senior director of infrastructure solutions for large cloud providers in high-performance computing and artificial intelligence at Nvidia. — Many years ago, our business evolved beyond pure computing chips. “
Harris said that through cooperation with Nvidia, MediaTek will be able to continue to create customized chips designed by cloud companies or artificial intelligence labs, tailored to their workloads, using “Proven scaling technology and ecosystem” Nvidia и “Rack-Scale Architecture” and “This is about opening up this ecosystem to the entire MediaTek customer base.”.
MediaTek has not publicly disclosed its customer base for customized artificial intelligence chips. The company is gradually stepping up its business to develop customized ASICs (application-specific integrated circuits) for data centers. MediaTek expects revenue to reach US$2 billion in 2026.
Given MediaTek’s experience in developing custom chips for smartphones, smart homes, cars and wireless communications, the company will be involved in creating custom PCs for DGX Spark developers. MediaTek and Nvidia will also continue to “Developing a software-defined artificial intelligence vehicle platform in the era of physical artificial intelligence.” MediaTek’s automotive platform uses Nvidia RTX graphics cards for smart car interiors and works with Nvidia Drive AGX, the company’s automotive computing platform for autonomous driving applications.
“Artificial intelligence is transforming every computing platform—from the world’s largest AI factories to personal computers and cars, – Nvidia CEO Jensen Huang said. — Together, we are building platforms that bring NVIDIA’s accelerated computing to new markets and give customers the freedom to build unique AI systems at scale. “
The partnership with MediaTek highlights the cyclical nature of Nvidia’s financial efforts over the past few years, with the chip giant often investing in companies that in turn feed into its ecosystem. The deal will give MediaTek access to Nvidia’s technology, including NVLinkallowing any chip, even a third-party manufacturer, to communicate with each other.
Nvidia announced a similar partnership with Amazon Web Services, albeit without a direct investment. AWS will deploy an additional 2 million Nvidia GPUs across its infrastructure and will integrate NVLink Fusion technology.
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