Nvidia invests $3.5b in MediaTek convertible bonds

Nvidia said on ‌Monday it has invested $3.5 billion in convertible bonds issued by Taiwan’s MediaTek, ‌which could add to growing investor concerns about circular financing in ⁠the AI sector.

The new deal is the latest example of Nvidia helping ⁠finance businesses building products and infrastructure around its technology, ​a strategy that supports growth in ‌its AI ecosystem but has ‌drawn ‌investor scrutiny.

The deal includes ‌MediaTek adopting Nvidia’s ​NVLink Fusion platform, allowing customers to ⁠develop custom AI chips that can connect to Nvidia-powered AI systems and ⁠data ​centers.

The companies ⁠will also extend collaboration on AI ​chips for personal computers and continue developing platforms for AI-powered vehicles.

In ⁠June, Nvidia unviled ⁠the ⁠RTX ‌Spark PC chip to “reinvent the PC” for the AI era, which ​was developed in partnership with MediaTek. (Reuters)

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