Nvidia is investing $3.5 billion into Taiwanese chipmaker MediaTek, a deal that will allow MediaTek to design custom AI chips for cloud providers and AI labs using Nvidia‘s NVLink Fusion ecosystem.

This includes NVLink technology that enables fast communication between chips, even non-Nvidia ones.

The investment comes as major cloud players like Amazon, Google, Microsoft, OpenAI, and Anthropic invest in their own custom silicon to reduce reliance on Nvidia GPUs.

By partnering with MediaTek, Nvidia can cede ground to custom chips while maintaining its dominant position in data center infrastructure.

Nvidia senior director Dion Harris said the company has expanded beyond pure computing chips and is now an “AI infrastructure company.

” MediaTek‘s custom data center ASIC business is expected to generate $2 billion in revenue by 2026.

The partnership also extends to DGX Spark, RTX Spark consumer AI PCs, and software-defined vehicles using Nvidia Drive AGX.

Nvidia CEO Jensen Huang said, “AI is transforming every computing platform — from the world’s largest AI factories to the PC and the car.”