Nokia said Tuesday that Nvidia will make a $1 billion equity investment in the company as part of a new strategic partnership focused on artificial intelligence-powered networks.
The Finnish telecommunications equipment maker said its board approved the issuance of about 166.4 million new shares to Nvidia at a price of $6.01 per share.
The deal will give Nvidia a 2.90% stake in Nokia, according to the company.
Nokia said it will use the proceeds to accelerate its strategic plans, including developing its 5G and 6G radio access network (RAN) software to run on Nvidia’s architecture.
The company also plans to boost its presence in the data center market.
As part of the partnership, the two companies will collaborate on AI networking solutions and explore incorporating Nokia’s data center switching and optical technologies into Nvidia’s future AI infrastructure.
The investment follows a series of moves by Nokia to pivot towards the AI and data center markets, including the recent acquisition of optical networking firm Infinera and the creation of a new unit dedicated to AI under new Chief Executive Justin Hotard.
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