Nvidia announced that it will invest 3.5 billion dollars in Taiwan-based chipmaker MediaTek. As part of the collaboration, MediaTek will develop custom AI chips for AI companies and major cloud providers using Nvidia’s NVLink Fusion technology. These chips will communicate with Nvidia GPUs at high speed, allowing companies to use solutions tailored to their own workloads together with Nvidia’s data center infrastructure.
The deal comes at a time when Amazon, Google, Microsoft, OpenAI and Anthropic are developing their own AI chips. MediaTek expects to generate 2 billion dollars in revenue from its custom data center ASIC business in 2026. The two companies will also work on DGX Spark, AI PCs, AI-powered tools and autonomous driving technologies.
Why it matters
The development’s main impact is that competition in the AI chip market is being shaped not only among GPU manufacturers but also through custom chips designed by major technology companies for their own workloads. The fact that the ASICs MediaTek will develop will work together with Nvidia GPUs could enable companies to use more customized solutions while preserving their existing data center infrastructure. This makes the partnership’s position important in a market that includes companies such as Amazon, Google, Microsoft, OpenAI and Anthropic, which are developing their own chips. However, because sufficient verification has not been provided regarding the investment amount and the scope of the partnership, how the announced plans will be implemented and whether MediaTek’s expected revenue will materialize remain open questions.
Background
Nvidia is not a new name in the FikirPilot archive: we have published 6 news stories mentioning the name in the last 90 days; the latest is dated August 30, 2026.
Term: data center
A data center is a facility where servers are housed alongside cooling systems and uninterrupted power; the debate over the electricity and water consumption of AI investments is conducted through these facilities.