Jensen Huang Says Nvidia Is ‘Not Intimidated’ By Custom AI Chips – $3.5B MediaTek Bet Targets ‘Reinvention’ Of Windows PC

• The new partnership includes support for MediaTek’s custom XPUs to plug into Nvidia’s NVLink-connected, rack-scale AI systems through the NVLink Fusion platform.
• CEO Jensen Huang said that the companies are also developing AI-focused PC chips, including technology aimed at a “reinvention of the Windows PC for the age of agents.”
• He added that Nvidia GPUs remain general-purpose accelerators capable of handling the full AI lifecycle.

Jensen Huang-led Nvidia (NVDA) defied the broader market downturn in midday trade on Monday after the company announced a $3.5 billion investment in MediaTek through convertible bonds and expanded its partnership with the chip designer.

In an interview with Bloomberg, Huang said Nvidia is “not intimidated” by the rise of custom AI chips, adding that specialized processors are already in the market and that Nvidia can benefit by making them easier to integrate with its infrastructure.

“XPU is in the market. It's not coming into the market – it's in the market. We're not intimidated by this. We're in fact welcoming it.”
– Jensen Huang, CEO, Nvidia

He added that the expanded partnership between the two companies will also support Nvidia's RTX Spark platform for the next generation of AI-focused PCs, like the “reinvention of the Windows PC for the age of agents.” Nvidia announced its collaboration with Microsoft (MSFT) on the RTX Spark platform in May, which features 1 petaflop of AI performance and up to 128 gigabytes (GB) of unified memory. 

NVDA stock rose around 1% in midday trade, while the  SPDR S&P 500 ETF (SPY) fell around 0.5%. The SPDR Dow Jones Industrial Average ETF (DIA) slipped as well, down around 0.60%, while the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) moved over 0.30% lower. 

Nvidia Wants Custom Chips On Its Infrastructure

NVLink Fusion is designed to reduce the complexity of developing and deploying custom AI accelerators. According to Huang, the platform brings together Nvidia's NVLink connectivity, chip-to-chip interconnects, and memory technologies. 

He added that this would allow customers to focus on designing specialized compute while relying on Nvidia and MediaTek for much of the surrounding infrastructure. “If they would like to put a specialized XPU into a data center, why not make it easier for them to connect it to the NVIDIA infrastructure?” Huang said.

The companies also extended their collaboration into automotive technology, combining MediaTek's automotive SoCs with Nvidia's accelerated computing, AI and graphics technologies for software-defined vehicles.

Huang stated that Nvidia's GPUs remain general-purpose accelerators capable of handling a broad range of AI workloads, from data processing and model training to inference and agentic AI.

How Is Retail Feeling About Nvidia’s Partnership With MediaTek?

On Stocktwits, retail sentiment around Nvidia continued to trend in ‘extremely bullish’ territory over the past day, and chatter remained at ‘extremely high’ levels.

Some traders viewed the MediaTek investment as a strategic move to secure supply and strengthen Nvidia’s position across the custom-chip and networking ecosystem. Others suggested the deal could help Nvidia align the broader ASIC market with its technology and potentially strengthen its position against rivals such as Broadcom (AVGO).

Nvidia has outperformed both the Magnificent 7 and the S&P 500 in August, rising around 9.5%, against a 4% gain for the Mag 7 and a 2.42% uptick for the broader index. 

The outperformance accelerated after Nvidia’s earnings report last week, which beat market expectations on both earnings and revenue.

Read also: Tom Lee Sees 'Very Strong' September Market Rally If Fed Holds Rates – Says Bitcoin’s ‘First Leg Up’ Has Begun

For updates and corrections, email newsroom[at]stocktwits[dot]com.