NVIDIA and Alphabet back MediaTek’s $3.9B AI bond deal

MediaTek raised $3.9B via convertible bonds, with NVIDIA investing $3.5B and Alphabet joining. The deal deepens their AI partnership. NVIDIA shares fell 4.57% after the news.

MediaTek has raised nearly $4 billion through zero-coupon convertible bonds, with NVIDIA investing $3.5 billion and Alphabet also participating. The bonds are priced at a 115% premium over MediaTek’s share price and will be listed on the Singapore Exchange. This move strengthens the partnership between MediaTek and NVIDIA, focusing on advancing AI computing platforms. Their collaboration includes work on the NVLink Fusion platform, aiming to deliver custom AI solutions across data centers, personal computing, and automotive technologies. MediaTek intends to use the proceeds to expand its operations within the AI ecosystem. Market observers suggest that NVIDIA’s investment strategy, which supports technology partners, could reshape the competitive landscape in the ASIC sector and reinforce NVIDIA’s position in AI infrastructure. Following the announcement, NVIDIA’s stock dropped 4.57%. Some sources note there is no public confirmation of the bond investment, but all highlight the deepening collaboration between NVIDIA and MediaTek.