Nokia announced that Nvidia is taking a $1 billion stake in the networking company, the latest partnership for the artificial intelligence chipmaker. Shares of Nokia soared 22% higher following the news, with the Finnish company issuing more than 166 million new shares to fund its plans for AI and other general corporate purposes.
The two companies also struck a strategic partnership to work together to develop next-generation 6G cellular technology. Nokia will adapt its 5G and 6G software to run on Nvidia’s chips and will collaborate on networking technology for AI, with Nvidia considering incorporating Nokia’s technology into its future AI infrastructure plans.
Nokia, best known for its early cellphones, has in recent years primarily been a supplier of 5G cellular equipment to telecom providers. The strategic collaboration positions both companies to capitalize on the convergence of AI and telecommunications infrastructure, with Nokia bringing expertise in cellular networking and Nvidia providing AI computing capabilities.
The announcement comes as Nvidia CEO Jensen Huang prepares to address an audience of policymakers and government leaders in Washington, D.C., to keynote the company’s developer conference, where Nokia and Nvidia are expected to discuss some of their collaborations and plans.
Nvidia has taken several equity stakes in strategic partners in recent months as the company has found itself at the center of the AI world. In September, it committed a $5 billion investment to one-time rival Intel and said it would invest $100 billion in OpenAI. The company also committed $500 million in self-driving car startup Wayve and a $667 million investment in U.K. cloud provider Nscale.
The Nokia investment represents another strategic move by Nvidia to secure partnerships across critical technology infrastructure sectors, combining its AI chip dominance with Nokia’s telecommunications expertise to shape the development of next-generation wireless networks that will underpin AI applications and services.
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