Aug 31 (Reuters) – 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.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Shinjini Ganguli)
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