Nvidia Puts $3.5 Billion Into MediaTek Convertibles and Opens NVLink Fusion for Custom XPUs
On August 31, 2026, Nvidia and MediaTek deepened their partnership: Nvidia buys $3.5 billion of MediaTek convertible bonds, and MediaTek adopts NVLink Fusion so hyperscalers can drop custom XPUs into Nvidia rack-scale factories, alongside multi-gen RTX Spark / DGX Spark and automotive work.
TLDR
NVIDIA and MediaTek on Monday, August 31, 2026 said they are deepening a partnership across AI factories, local AI (multi-gen RTX Spark / DGX Spark), and automotive. NVIDIA buys $3.5 billion of MediaTek convertible bonds. MediaTek adopts NVLink Fusion so hyperscalers, CSPs, and frontier labs can design custom XPUs that drop into NVLink rack-scale factories. Jensen Huang: “freedom to create differentiated AI systems at enormous scale.”
The deal
| Item | NVIDIA + MediaTek newsrooms Aug 31 |
|---|---|
| Financing | $3.5B NVIDIA → MediaTek convertibles |
| Fabric | NVLink Fusion for custom XPUs |
| Edge | Multi-gen RTX Spark / DGX Spark |
| Auto | Continued co-design |
Product-line de-dupe: not Aug 24 Groq 3 LPX, not Aug 10 $500B financing MOUs, not Aug 19 Marvell warrant (Google, not Nvidia). New $3.5B + custom-XPU path.
Why this story matters
Nvidia is financing the ASIC guys so their chips still plug into Nvidia racks. That is how you tax Google/Amazon/Meta silicon without blocking it. Watch: first named XPU customer, and whether $3.5B is a floor.