Nvidia invests $3.5 billion in MediaTek for custom AI chip partnership

Nvidia is investing $3.5 billion in MediaTek, with MediaTek adopting Nvidia's NVLink Fusion interconnect for its own custom AI accelerators. The partnership also extends to local AI computing and automotive platforms.

Why it matters: By opening NVLink Fusion to a major chipmaker like MediaTek, Nvidia is positioning its interconnect as an industry standard for custom silicon rather than keeping it exclusive to its own GPUs, which could deepen Nvidia's ecosystem lock-in even as hyperscalers build their own chips. It comes as Nvidia is separately raising GPU server prices amid a memory shortage, underscoring how central Nvidia remains to AI infrastructure economics.