Nvidia invests $3.5 billion in MediaTek convertible bonds

Nvidia said on Monday it has invested $3.5 billion in convertible bonds issued by Taiwan's MediaTek, which could add to growing investor concerns ‌about circular ⁠financing ⁠in the AI sector.

The new ​deal is the latest example of Nvidia ​helping finance businesses building products and infrastructure around its technology, ​a strategy that ⁠supports growth ‌in its AI ​ecosystem ​but has drawn investor ⁠scrutiny.

The deal includes MediaTek adopting Nvidia's ​NVLink Fusion platform, allowing customers ​to develop custom AI chips that can connect to Nvidia-powered AI systems and data centers.


The companies will also ‌extend collaboration on AI chips for personal computers ​and continue ​developing ⁠platforms for AI-powered vehicles.

In June, Nvidia unviled the RTX Spark PC chip ​to "reinvent the PC" for the AI era, which was developed in partnership with MediaTek.