NVIDIA invests $1B in Nokia, advancing AI platform for 6G
What's the story
NVIDIA has announced a major investment in Finnish telecommunications giant Nokia. The tech company will invest $1 billion to acquire a 2.9% stake in Nokia, strengthening its foothold in the telecom infrastructure and next-gen connectivity solutions market globally. As part of the deal, Nokia will issue some 166 million shares to NVIDIA at $6.01 per share. Following the news, shares of Nokia jumped 21% in Helsinki, the biggest gain since 2013.
Technological collaboration
NVIDIA chips to speed up Nokia's 6G launch
The partnership is expected to bolster Nokia's position in 5G and AI-driven network technologies while expanding NVIDIA's influence across these sectors. The tech giant's chips will be used to speed up Nokia's software for 5G and 6G networks. The companies also plan to explore how Nokia's data center technology could be integrated into NVIDIA's own AI infrastructure architecture.
Business growth
Nokia's strategic shift and recent acquisition
Nokia, once a leading mobile network parts supplier, has been expanding into data centers. The move is paying off as the artificial intelligence boom drives demand for computing capacity. Earlier this year, Nokia acquired Infinera Corp. for $2.3 billion to expand its networking products for AI data centers. This strategic shift has helped the company exceed Wall Street's earnings estimates last quarter.
Future prospects
Next-gen wireless technology development
NVIDIA will also provide Nokia with a new programmable computer. This tech can communicate wirelessly, run AI processing, and direct mobile traffic simultaneously. The companies are working together on hardware based on new software and chips developed by NVIDIA for the next generation of wireless connections - 6G - which will be characterized by its AI uses.
Trial phase
Transforming the network for AI
T-Mobile US will start trials of this new tech next year. Nokia's goal is to process data closer to the user, reducing lag in sending data. This shift is a "fundamental redesign of the network," as per Nokia CEO. Justin Hotard. He added that it "accelerate AI-RAN innovation to put an AI data center into everyone's pocket."