Nvidia CEO Jensen Huang & MediaTek CEO Rick Tsai Talk New Partnership

**SPEAKER_1** (0:02)
Bloomberg Audio Studios, Podcasts, Radio, News.

**Ed Ludlow** (0:08)
Welcome to our Bloomberg Television and Bloomberg Radio audiences around the world. We are joined by Nvidia CEO Jensen Huang and MediaTek CEO Rick Tsai, who joins us from Taiwan late in his evening. The idea is you can take custom silicon, right? XPU and just plug it into any GPU based architecture, share the memory, the networking.
Jensen, could we start with you please and just ask you to explain the technology agreement here?

**Jensen Huang** (0:33)
Today we're announcing a big partnership. We've already had a big partnership with MediaTek. Today we're going to make it a lot bigger.
It started with us working on recognizing that MediaTek makes the world's best SoCs. And we integrated the Nvidia NVLink chip-to-chip interface to MediaTek so that whenever there's an SoC for MediaTek, we can connect it to Nvidia's GPU. And what came out of that first endeavor is this project called DGX Spark.
This little computer is an incredible computer. It's one petaflops, allows you to run an advanced, agentic AI right on your desk instead of having to run it in the cloud. Well, today what we're going to do is we're going to expand our partnership so that we do multiple generations of this. This processor is going to also be the foundation of a revolutionary new computer that's coming from Microsoft and ourselves, a reinvention of the Windows PC for the age of agents. Now, the second thing that we're doing is that MediaTek is incredibly successful building XPUs.
We're going to connect our MVLink Fusion, MVLink system so that Nvidia scale up MVLink system, which is revolutionized AI and our SpectrumX switches, our entire networking franchise chassis, system chassis to MediaTek. So when they win projects, it brings along Nvidia networking. However, you also know that Nvidia is already in every cloud and every data center. And so whenever there's a MediaTek XPU, we'll be able to connect it right into that data center in a really seamless way. And then of course, we're partnering in robotic systems like autonomous vehicles. So you know that AI has revolutionized how we do computing. And we're going to work with MediaTek in all of these different areas. When they win, we have an opportunity to sell a lot more. When we win, they have an opportunity to sell a lot more.

**Ed Ludlow** (2:35)
Rick, the ASIC customer builds their own accelerator. They don't need to reinvent the rest of the architecture. But from MediaTek's perspective, Rick, I think it's worth saying, what is the pitch to your ASIC customers on the value of doing this with Nvidia through NVLink?

**Rick Tsai** (2:52)
I think, Ed, thank you for the opportunity. And I also want to really thank Nvidia and Jensen for having the confidence in MediaTek. And for us, I believe, if you look at the whole AI computing stack, all the way from the very top of the, well, the ASIC, from the hyperscalers to the mid-end of the enterprise data centers and neoclouds to the, what Jensen just described, to the desktop supercomputers for the AI applications. You see, I think the collaboration, the partnership we are having with Nvidia, we saw XPU capability, Nvidia's NVLink Fusion will enable throughout this computing stack customers. The important thing for this era of AI is, it's incredibly fast changing. So it's absolutely critical that we can together, we can enable the customer throughout the stack to build the data center, to scale with high speed, where XJENZEN always like to say speed of light.
And we will work with them, our customers with tremendous flexibility.
So, that's part, I think, the essence of the collaboration partnership with Nvidia.

**Ed Ludlow** (4:33)
Rick, you had said that your AI chip business would be about $2 billion this year, but would accelerate to get about 15% of an addressable market of $80 billion next year. Does this arrangement with Jensen and Nvidia help you accelerate the growth in that business?

**Rick Tsai** (4:51)
We certainly expect that to happen, but it will take a little time because we're now getting started building, I think, building Jensen's latest NVLink version into that chassis that he just mentioned. Obviously, I think that chassis will provide the customer, potential customers, with tremendous vehicle to enable a fast time to market. And that's a key for today's world, fast time to market.

**Ed Ludlow** (5:25)
Jensen, you're making a $3.5 billion investment in MediaTek through the purchase of convertible bonds. Why?

**Jensen Huang** (5:33)
Well, this is one of the largest partnerships we have.
We're building, as I mentioned, multiple generations of Edge AI and PC chips. And our chips are GPUs, and they're connected to die to die with MediaTek's SoCs. And so, they're working with us in multiple generations of SoCs so that we can connect our GPUs to them. This new product line we call DGX Spark and then RTX Spark for PCs is a major investment for us. We have a major commitment to the entire PC industry, and so this partnership expands upon that. This partnership, this investment also formalizes the partnership that we have in building AI factories. As you know, today's AI factories is not just a GPU. It's GPUs and scale-up switches and scale-out switches. The amount of networking necessary, there are five different types of networking necessary to build out an entire factory, not to mention the Nvidia Vera CPUs. And so this partnership allows MediaTek to plug directly into that entire AI factory platform.