Nvidia’s $3.5B MediaTek bet reveals its plan for tackling Big
As part of the deal, MediaTek will adopt Nvidia’s technology that will help it design custom chips for AI companies and hyperscalers that can be plugged…
Summary
As part of the deal, MediaTek will adopt Nvidia’s technology that will help it design custom chips for AI companies and hyperscalers that can be plugged directly into Nvidia-based data centers. The deal comes as a growing number of AI companies and major cloud providers like Amazon, Google, Microsoft, OpenAI and Anthropic invest in building their own chips so they can be less reliant on Nvidia’s GPUs. Deals like this one with MediaTek allow Nvidia to cede ground to custom silicon while still maintaining its lead as the dominant data center scaffolding. “Nvidia is an AI infrastructure company,” Dion Harris, Nvidia’s senior director of HPC and AI hyperscaler infrastructure solutions, said on Monday on a call with reporters.
Positives
- The deal comes as a growing number of AI companies and major cloud providers like Amazon, Google, Microsoft, OpenAI and Anthropic invest in building their own chips so they can be less reliant on Nvidia’s GPUs.
- “We expanded beyond pure computing chips years ago.
Risks & concerns
- The article may not provide enough evidence to validate every implication.
- Execution, cost, adoption, regulation, or security could change the outcome.