HELSINKI: US chip giant Nvidia will take a 2.9 percent stake in Finnish telecoms equipment maker Nokia for $1 billion, Nokia said Tuesday, sending its share price soaring almost 20 percent.&nbsp;The investment is in addition to a strategic partnership between the two companies to develop Nokia&#39;s fifth and sixth generation (5G and 6G) of mobile telephony using Nvidia chips.&nbsp;&quot;Nokia and Nvidia have agreed to collaborate on AI networking solutions and explore opportunities to incorporate Nokia&#39;s data center switching and optical technologies in Nvidia&#39;s future AI infrastructure architecture,&quot; Nokia said in a statement.&nbsp;It said it would issue more than 166 million new shares, for which Nvidia would pay $6.01 per share.&nbsp;Under the partnership, Nokia &quot;intends to increase its presence in the AI and cloud market with data center aligned networking solutions.&quot;&nbsp;The Nokia share was trading up by more than 19 percent after the news, at 7.53 euros.&nbsp;Virtually unknown to the general public just three years ago, Nvidia now boasts the world&#39;s highest revenues, driven by sales of its graphics cards -- or GPUs (graphics processing units) -- the processors that are key to building the technology behind ChatGPT and its rivals.

Artificial Intelligence

US chipmaker Nvidia is investing $1 billion for a 2.9% stake in Nokia as part of a new partnership to develop AI-powered 5G and 6G technologies. Nokia shares surged nearly 20% following the announcement.
Nvidia will buy a 2.9% stake in Nokia for $1B, forming a strategic alliance to develop 5G, 6G, and AI networking solutions, boosting Nokia’s AI, cloud, and data center capabilities.


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Nvidia’s $1B investment in Nokia fuels AI and 5G/6G expansion

Nvidia’s $1B investment in Nokia fuels AI and 5G/6G expansion