Nvidia Corporation is acquiring a $1 billion stake in Nokia and plans to supply the Finnish telecommunications company with artificial intelligence chips for wireless networks.
Nvidia Corporation is acquiring a $1 billion stake in Nokia and plans to supply the Finnish telecommunications company with artificial intelligence chips for wireless networks.
Against this backdrop, according to Bloomberg, Nokia shares rose 21% in Helsinki, the biggest gain since 2013.
As part of the deal, Nokia is expected to issue about 166 million shares to Nvidia at $6.01 each, which will allow Nvidia to concentrate 2,9% of the company’s shares.
Meanwhile, Nvidia chips will be used to accelerate Nokia’s software for 5G and 6G networks, and Nvidia will explore ways to use Nokia’s data center technology in its own artificial intelligence infrastructure.
Nokia is currently making inroads into the data center business, as the once iconic phone brand of the 1990s that dominated the market has faded from popular culture for a while, losing ground to competitors and refocusing on network services.
CEO Justin Hotard is leading the reorganization of the Scandinavian company, emphasizing its position as the only Western alternative to Huawei Technologies for supplying the entire portfolio of communications equipment, from 5G radios to fiber optic cables.
During an interview with Bloomberg TV, Nvidia CEO Jensen Huang said he invested in Nokia because he was excited about the work they could do together.
According to the publication, as part of the agreement between the companies, Nvidia will supply Nokia with a new product — a specially programmed computer capable of providing wireless communication, while simultaneously processing data based on artificial intelligence and directing mobile traffic.
At the same time, Hotard stressed that the deal with Nvidia is not exclusive, which means that the chip giant could turn 180 degrees and sign a deal with Nokia’s competitor, Ericsson.
Meanwhile, as dev.ua wrote, Huawei and Nokia received permission from the National Commission for the Evaluation of Electronic Communications this year to test 5G in three cities of Ukraine.
Previously, there was also information that the Finnish company Nokia was considering opening an R&D center in Ukraine.
