Nokia announced on Tuesday that Nvidia is investing $1 billion in the Finnish networking company, marking another major partnership for the AI chip giant.
Nokia shares surged 22% following the announcement.
The company will issue over 166 million new shares, using the proceeds to advance its AI initiatives and general operations.
As part of the deal, Nokia and Nvidia will jointly develop next-generation 6G technology.
Nokia plans to optimize its 5G and 6G software for Nvidia chips, while the US chipmaker may integrate the cellular company’s tech into its AI infrastructure.
The partnership highlights Nvidia’s growing influence in the AI ecosystem.
In recent months, Nvidia has invested heavily, including $5 billion in Intel, $100 billion in OpenAI, and $667 million in UK cloud firm Nscale.