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Physix Frontier · News Briefing Card (enbrief · Sep 1, 2026)

Nvidia Invests $3.5B in MediaTek to Open NVLink Ecosystem

KEY FACTS

  • Nvidia has invested $3.5 billion in MediaTek to help design custom AI chips for Nvidia data centers.
  • MediaTek is granted access to NVLink Fusion technology, enabling its proprietary chips to interconnect at high speeds with Nvidia hardware.
  • This move aims to counter the trend of cloud providers developing their own chips by solidifying Nvidia's infrastructure position through open interfaces.
  • The two companies will also deepen cooperation in DGX Spark, consumer PCs, and software-defined vehicles.

KEY DATA

$3.5 billionInvestment Amount
$2 billionMediaTek ASIC Expected Revenue

PHYSIX OBSERVATION

This marks a critical shift for Nvidia from 'selling shovels' to 'setting standards.' Facing encirclement by tech giants developing their own chips, Nvidia is no longer attempting to monopolize all compute power but is instead converting competitors into ecosystem partners through capital ties and opening the NVLink protocol. This 'co-opting' strategy preserves Nvidia's absolute voice in the data center interconnect layer while leveraging MediaTek's manufacturing capabilities to fill the mid-to-low-end market, building a more robust moat.

Source: enbrief original report ↗