Nvidia invests $3.5 billion in MediaTek convertible bonds

Nvidia said on Monday it has invested $3.5 billion in convertible bonds issued by Taiwan’s MediaTek, which could add to growing investor concerns ‌about circular ⁠financing ⁠in the AI sector.

The new deal is the latest example of Nvidia helping finance businesses building products and infrastructure around its technology, a strategy that ⁠supports growth ‌in its AI ecosystem but has drawn investor ⁠scrutiny.

The deal includes MediaTek adopting Nvidia’s NVLink Fusion platform, allowing customers to develop custom AI chips that can connect to Nvidia-powered AI systems and data centers.