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Custom silicon, meaning a processor designed from scratch to one buyer's specifications rather than sold as a general-purpose part off a shelf, is the foundation of a $3.5 billion agreement between Nvidia and MediaTek.
MediaTek, a chip designer that competes directly with Qualcomm, announced the deal and saw its shares climb 10% in a single trading session.
The short version of what was actually agreed: the two companies will work together to integrate Nvidia technology into MediaTek's custom AI chip business. The collaboration also extends to personal computers and cars.
What each area of the deal involves An AI chip is a processor built to handle the mathematics of machine learning and artificial intelligence at speed, rather than the broad mix of tasks a standard processor handles.
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