Qualcomm rival MediaTek jumps 10% after $3.5 billion Nvidia AI chip deal

MediaTek, a major smartphone chip company, partnered with Nvidia in a deal where Nvidia invested $3.5 billion in MediaTek's convertible bonds (financial instruments that can be converted into company shares). The partnership allows MediaTek to integrate Nvidia's NVLink Fusion platform (a system for connecting AI processors together) into custom chips it designs for data centers and AI applications, helping MediaTek compete in the growing market for specialized AI hardware.