The AI chip giant Nvidia is making another major investment, announcing on Tuesday that it is taking a $1 billion stake in the networking company Nokia. The news sent Nokia’s shares soaring 20%.
As part of the deal, Nokia will issue over 166 million new shares to Nvidia. The Finnish company, best known for its iconic early cell phones, says it will use the money to fund its own AI plans.
But this isn’t just a simple investment. The two companies have also formed a new strategic partnership to work together on the future of wireless technology, including the development of next-generation 6G cellular networks. Nokia will adapt its 5G and 6G software to run on Nvidia’s powerful chips, and the two will collaborate on networking technology for AI.
This is the latest in a series of major investments for Nvidia, which has found itself at the very center of the AI revolution. In recent months, the company has poured billions into strategic partners, including a massive $5 billion investment in its rival, Intel, and a plan to invest up to $100 billion in OpenAI.
This new partnership with Nokia shows that Nvidia is not just focused on building the most powerful chips; it’s also making strategic bets on the companies and technologies that will shape the entire AI ecosystem, from the data center to the wireless networks that will connect us all.
