Nvidia and MediaTek Team Up to Challenge Intel and AMD in CPU Market

Nvidia is making bold moves to challenge Intel and AMD in the desktop CPU market by teaming up with MediaTek, a Taiwanese fabless semiconductor company.

At CES 2025, Nvidia unveiled Project DIGITS, a desktop computer powered by a new central processor co-developed with MediaTek.

The chip, designed for energy efficiency, marks a significant step in Nvidia’s strategy to expand beyond its traditional graphics card dominance.

Nvidia’s CEO, Jensen Huang, announced that the company tapped MediaTek to help design this energy-efficient CPU, which will be marketed for use in AI development, particularly for Linux-based operating systems.

The system is also compatible with Microsoft’s Windows Subsystem for Linux, aiming to bridge the gap between the two operating systems.

This collaboration comes as Nvidia seeks to position itself as a serious contender in the CPU market, especially as Intel struggles to capitalize on the AI boom.

Meanwhile, AMD is also intensifying competition with its Ryzen AI Max processors, introduced at CES 2025, which feature 16 cores and advanced AI performance.

MediaTek, known for its work with Taiwan Semiconductor Manufacturing Co’s 3nm chips, is positioning itself to meet the growing demands in AI, mobile devices, and automotive computing.

Intel, which still holds a dominant 62% market share in the CPU market, faces increasing pressure from both Nvidia and AMD, as the industry shifts towards AI-driven solutions.