Nvidia invests $1 billion in Nokia. Shares of the latter soared by 20%

Nokia, known as the pioneer of mobile communications, has announced that technology giant Nvidia will acquire its shares for $1 billion, becoming a strategic partner.

Following the news, Nokia shares soared 20% in New York trading, while Nvidia shares rose 1%.

As part of the deal, Nokia will issue more than 166 million new securities. The deal will provide Nvidia with 2.9% of Nokia shares. The Finnish company will use the proceeds to develop projects in the field of artificial intelligence, as well as for general corporate purposes.

In addition, Nokia and Nvidia have entered into a strategic partnership to jointly develop sixth-generation (6G) communication technologies. Nokia plans to adapt its software solutions for 5G and 6G networks to work on Nvidia chips, as well as to cooperate with the American company in the field of networking technologies for AI.

According to Nokia's statement, Nvidia is also considering integrating its technology into future AI infrastructure projects. The companies are expected to present details of the collaboration at Nvidia's conference for policymakers and government officials in Washington, D.C., which will be held today, October 28, CNBC reports.

This article was AI-translated and verified by a human editor