Mentioned:
Nvidia is pouring billions of dollars into one of the world’s largest chip designer. But, why?
What’s happening:
- Nvidia (NASDAQ: NVDA) has made a strategic investment of $3.5B USD in MediaTek through convertible bonds
Why it matters:
- MediaTek is one of the single largest chip designers in the world and Nvidia’s new investment in the company will deepen their push into custom artificial intelligence accelerators for data centres
Going deeper:
- MediaTek has publicly stated that they will work with Nvidia’s NVLink Fusion ecosystem to allow customers to develop custom infrastructure that can be integrated with Nvidia’s rack-scale systems
- Nvidia and MediaTek also plan to continue to collaborate on multiple generations of Nvidia RTX Spark and DGX Spark PC chips for consumer PCs and developer supercomputers
The intrigue:
- Nvidia just recently made major waves on Wall Street when they partnered with BlackRock, Blackstone, Goldman Sachs, Apollo, Brookfield and KKR to raise more than $500B USD for artificial intelligence infrastructure
The fine print:
- Nvidia's $3.5B USD investment in MediaTek was done through convertible bonds and the coupon price, conversion price and maturity have not yet been publicly disclosed
