Nvidia bets $3.5B on MediaTek to counter Big Tech's AI chip buildout
nvidia invests $3.5 billion in mediatek to design custom ai chips, helping mediatek tap into ai market while maintaining nvidia's data center dominance. this affects big tech's ai chip strategy.
nvidia is investing $3.5 billion in taiwanese chipmaker mediatek to help it design custom chips for ai companies and hyperscalers. mediatek will use nvidia's technology to create chips that can be plugged directly into nvidia-based data centers. this deal allows nvidia to maintain its dominance in data center infrastructure while giving mediatek a boost in the ai chip market. the partnership comes as big tech companies like amazon, google, and microsoft invest in building their own ai chips. mediatek expects its custom data center asic business to generate $2 billion in revenue in 2026.