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Nvidia expands IP licensing with MediaTek deal for NVLink Fusion

Nvidia has invested $3.5 billion in MediaTek convertible bonds as part of a deal for MediaTek to license Nvidia's NVLink Fusion high-speed interconnect technology for its datacenter XPU offerings.

  • MediaTek is the latest company to license Nvidia's NVLink Fusion technology.
  • Nvidia has invested $3.5 billion in MediaTek convertible bonds.
  • Amazon is also adopting NVLink Fusion for its Trainium4 AI accelerators and NVHBM for its Trainium family.

Nvidia is expanding its intellectual property (IP) licensing strategy, with MediaTek becoming the latest company to adopt its NVLink Fusion high-speed interconnect technology. As part of the agreement, Nvidia has invested $3.5 billion in convertible bonds issued by MediaTek.

NVLink Fusion, which began as a commercial version of Nvidia's inter-GPU interconnect, is now a broader offering for licensing its semiconductor IP. Other companies planning to integrate the technology include Amazon, Fujitsu, Qualcomm, Arm, and Marvell.

The licensing allows companies to focus on building accelerators without developing their own scaling solutions. Amazon, for instance, used Nvidia's MGX NVL72 reference design for its Trainium3-based rack systems and plans to use NVLink Fusion for its upcoming Trainium4 accelerators, moving away from its in-house NeuronLink.

Nvidia's senior director of HPC and AI Hyperscale Infrastructure, Dion Harris, stated that the NVLink Fusion platform offers flexibility for customers to adopt various networking technologies. Nvidia is also expanding its IP offerings with NVHBM, a custom base with an integrated memory controller, which Amazon's Annapurna Labs will use for its Trainium family of AI ASICs.

Why this matters: Nvidia's IP licensing strategy allows it to generate revenue from custom AI ASICs developed by competitors, potentially influencing the design and scaling of future AI infrastructure.

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