Nvidia is purchasing a $1 billion equity position in Nokia, the networking company disclosed Tuesday, representing the latest strategic investment by the artificial intelligence chip manufacturer.
Nokia’s stock price surged 22 percent following the revelation.
The Finnish telecommunications equipment provider will create more than 166 million new shares for the transaction, with funds designated for artificial intelligence projects and general business operations.
Beyond the financial investment, the two corporations established a strategic alliance focused on advancing next-generation 6G wireless technology.
Under the agreement, Nokia will modify its 5G and 6G software platforms to operate on Nvidia’s chip architecture while jointly developing networking solutions centered on AI applications.
According to Nokia’s statement, the company’s technology could potentially be incorporated into Nvidia’s upcoming AI infrastructure developments.
Nokia, the Finnish enterprise previously recognized for pioneering mobile phone devices, has shifted its primary focus in recent years toward providing 5G cellular infrastructure to telecommunications carriers.
The Nokia investment continues Nvidia’s recent pattern of acquiring equity stakes in strategic collaborators as it establishes a central position within the AI sector.
Last September, the chip giant revealed a $5 billion investment in Intel, its former competitor, alongside a $100 billion financial commitment to OpenAI.
Additional investments include $500 million in autonomous vehicle startup Wayve and $667 million in Nscale, a cloud services provider based in the United Kingdom.
