NVIDIA put $3.5 billion into MediaTek and named vehicle platforms in the wider deal

NVIDIA said on Monday that it had invested $3.5 billion in convertible bonds issued by MediaTek, alongside an expanded collaboration between the two companies spanning three areas: AI infrastructure, local AI computing and automotive.

The automotive section of the announcement is short. NVIDIA said MediaTek’s Dimensity Auto platforms integrate NVIDIA technologies for vehicle cockpits and can work alongside NVIDIA’s DRIVE AGX driving computer, and that the two companies would continue building on that foundation across future generations. It described the aim as a scalable architecture for what it called AI-defined vehicles, and said the pair would continue developing platforms for software-defined vehicles.

The release named no carmaker, no production program and no volumes on the automotive side, and it did not allocate any portion of the $3.5 billion to vehicle work. Rick Tsai, MediaTek’s vice chairman and chief executive, said the investment “strengthens a collaboration that spans cloud AI infrastructure, local AI computing and automotive.”

NVIDIA disclosed the figure voluntarily. A check of its filing history with the US Securities and Exchange Commission showed no current report covering the investment, with its most recent Form 8-K dated August 26 and only a Form 144 and a Form N-PX filed on the day of the announcement.

MediaTek’s side was compelled, and it is more specific. In a material-information filing to Taiwan’s Market Observation Post System at 20:25 Taipei time on August 31, MediaTek said the pricing of its first overseas unsecured convertible bond issue was complete: $3.9 billion in total, a zero percent coupon, a five-year term maturing on September 8, 2031, and a conversion price of NT$4,513.75, set at 115 percent of that day’s closing share price. NVIDIA subscribed for 17,500 of the bonds, $3.5 billion, as a non-related party for the stated purpose of long-term strategic cooperation. MediaTek said the proceeds would fund foreign-currency procurement of materials, and put maximum dilution at about 1.67 percent. The filing allocates nothing to vehicle work either.