Nvidia is investing $3.5 billion into Taiwanese chipmaker MediaTek. As part of the deal, MediaTek will adopt Nvidia’s technology that will help it design custom chips for AI companies and hyperscalers that can be plugged directly into Nvidia-based data centers.
The deal comes as a growing number of AI companies and major cloud providers like Amazon, Google, Microsoft, OpenAI and Anthropic invest in building their own chips so they can be less reliant on Nvidia’s GPUs. Deals like this one with MediaTek allow Nvidia to cede ground to custom silicon while still maintaining its lead as the dominant data center scaffolding.
