Nokia announced that Nvidia is now investing $1 billion in the company, aiming to strengthen their collaboration in the AI sphere.
Following the major announcement, Nokia’s shares exponentially rose to 26%.
Under the agreement, Nokia will issue over 166 million new shares, using the funds to support its AI initiatives and other corporate goals.
Notably, both the companies joined forces to develop next-generation 6G technology, with Nokia adapting its 5G and 6G software to run on Nvidia’s chips.
Furthermore, they will partner on AI-driven networking technology, while Nvidia considers integrating Nokia’s technology into its future AI infrastructure.
In the early 2000’s Nokia rose to fame due to its mobile phones, but now the company is mainly focusing on offering 5G equipment to telecom providers all across the globe.
The announcement coincides with Nvidia CEO Jensen Huang’s keynote at the company’s developer conference in Washington, D.C., where Nokia and Nvidia are likely to highlight further partnership plans.
Nvidia has now made multiple strategic investments, including $5 billion in Intel, $100 billion in OpenAI, $500 million in self-driving startup Wayve, and $667 million in U.K. cloud provider scale, strengthening its expanding influence on AI and technological realm globally.
