Nvidia invested $3.5 billion in MediaTek’s convertible bonds, its largest direct investment outside the United States, covering roughly 90% of MediaTek’s record $3.9 billion offshore bond offering. Alphabet also participated without disclosing its investment. MediaTek shares rose 10%, reaching their daily limit in Taipei on Tuesday. The deal expands cooperation across AI infrastructure, edge AI and software-defined vehicles, with MediaTek adopting Nvidia’s NVLink Fusion platform to connect custom chips to Nvidia rack-scale systems. MediaTek expects its AI chip business to generate more than $2 billion in revenue this year and is targeting 15% to 20% of an addressable market projected at $80 billion by 2027. Its first AI accelerator ASIC (specialized chip for a focused task) is scheduled for mass production in the fourth quarter of 2026, followed by a second-generation chip in 2028.