New AI chip from MediaTek to be produced with NVIDIA

Collaboration that marks MediaTek’s AI expansion.

Chinese firms are accelerating Nvidia H20 chip purchases as DeepSeek’s affordable AI models gain traction in multiple industries.

MediaTek is reportedly collaborating with NVIDIA to develop a new AI processor, which is expected to be manufactured using 3nm technology and is slated for tape-out later this month. This move comes alongside MediaTek’s recent launch of its Dimensity 9400 smartphone chipset, indicating the company’s ambition to diversify its product lineup. The new AI processor is projected to enter mass production by late 2025 and aims to fill a gap in the market for Windows-on-Arm devices, especially given the comparatively weaker graphics performance of Qualcomm’s Snapdragon X Elite.

The new chip is expected to work alongside NVIDIA’s GPU, aiming at major laptop brands like Dell, HP, Lenovo, and Asus as potential clients. Priced at approximately $300, this processor signifies MediaTek’s move into the AI PC sector, marking a significant shift from its usual collaborations with AMD. However, MediaTek has previously partnered with NVIDIA, notably in their recent unveiling of automotive SoCs that incorporate NVIDIA technology, highlighting their mutual interest in enhancing AI capabilities.

As the AI landscape evolves, MediaTek’s partnership with NVIDIA could bolster its position in a competitive market, especially given NVIDIA’s dominance in AI processors. This collaboration underscores MediaTek’s strategic shift and opens avenues for innovative products in the AI-driven technology sector.