Nvidia is making a $1 billion equity investment in the Finnish telecom company Nokia.
The two firms are forming a strategic partnership to integrate artificial intelligence into telecoms networks. The deal gives Nvidia a 2.90 percent stake in Nokia. The US chip giant will acquire over 166 million new shares at $6.01 each. Nokia will use the funds to accelerate its 5G and 6G software development. This software will be optimized to run on Nvidia's hardware architecture.
The investment also helps Nokia increase its presence in the AI and cloud markets. This partnership focuses on creating advanced AI networking solutions.
The companies will explore using Nokia’s data center switching and optical technologies within Nvidia's future AI infrastructure. This collaboration aims to improve how data centers are built and operated.
Nokia has successfully pivoted from mobile phones to become a major supplier of 5G cellular equipment for global telecom providers.
Following the news, Nokia's shares increased by 15 percent.
