NVIDIA and MediaTek announced an expansion of their long-standing partnership on August 31, with NVIDIA investing $3.5 billion in convertible bonds issued by MediaTek as the companies broaden their collaboration across cloud AI infrastructure, local AI computing and automotive platforms.

Under the agreement, MediaTek will adopt NVIDIA's NVLink Fusion platform, providing hyperscalers, cloud service providers and frontier model developers with a path to develop custom XPUs that can be integrated into NVIDIA NVLink-connected rack-scale AI systems and AI factories.

The companies will also continue developing multiple generations of NVIDIA RTX Spark and DGX Spark PC chips that combine NVIDIA GPUs with MediaTek SoCs for consumer PCs, AI developer systems and enterprise workstations. Their automotive partnership will continue to focus on computing platforms for AI-powered, software-defined vehicles.

MediaTek has previously contributed to NVIDIA's GB10 Grace Blackwell Superchip and is expanding further into custom data center silicon. The company expects its AI data center ASIC business to generate about $2 billion in revenue in 2026 and sees a $70 billion to $80 billion addressable market in 2027, targeting roughly 10% to 15% of the opportunity over time.

For NVIDIA, NVLink Fusion provides a way for customers to connect custom CPUs and XPUs with its AI computing ecosystem, extending the role of NVLink into the growing custom silicon market. For MediaTek, the expanded partnership strengthens its push beyond smartphones and edge devices into AI data centers and high-performance computing.