Nvidia Investing $3.5 Billion in Chipmaker MediaTek

Bloomberg's Ed Ludlow reports that Nvidia is investing $3.5 billion in MediaTek through convertible bonds, framing the move as a way to stay embedded in the custom silicon buildout even if hyperscalers bypass Nvidia GPUs. The partnership would let Nvidia supply GPU-based architecture, memory, networking, and rack infrastructure for custom chips. Ed notes Nvidia management rejects circular-financing concerns and sees the capital as helping partners move projects forward. - Nvidia plans a $3.5 billion investment in MediaTek via bonds convertible into shares. - MediaTek has a younger custom-chip business targeting hyperscalers and technology companies. - Nvidia's pitch is to provide GPU-based architecture, memory, networking, and rack infrastructure to custom silicon projects. - The strategy is aimed at keeping Nvidia growing even if customers use custom chips rather than Nvidia GPUs. - Jensen Huang and the CFO reportedly pushed back on circular-financing characterizations. - Ed Ludlow expects to interview Jensen Huang at 9 a.m. Eastern.