Nvidia invests $1 billion in Nokia to develop 6G-AI technology

Nokia shares surge 22% after Nvidia acquires 166 million shares, forms strategic alliance to push 5G–6G software to run on Nvidia's AI chips

On October 29, 2015, at 6:39 AM, CNBC reported that Nokia announced Nvidia had invested $1 billion in the company, marking the latest collaboration with the world's largest artificial intelligence chip manufacturer.

Nokia shares surged more than 22% following the news.

Nokia will issue more than 166 million new shares and will use the proceeds to develop AI projects and general corporate purposes.

The two companies have also agreed to a strategic partnership to jointly develop next-generation 6G cellular technologies, with Nokia saying it will adapt its 5G and 6G software to run on NVIDIA chips and collaborate on networking technologies for AI systems.

Nokia also said that NVIDIA will consider using its technology in future AI infrastructure.

Nokia, a Finnish company, was famous for its early mobile phones but has recently shifted its role to becoming a supplier of 5G network equipment to telecom operators around the world.
The announcement comes as Nvidia CEO Jensen Huang is set to speak at the company's conference in Washington, D.C., attended by policymakers and government leaders.

Nokia and NVIDIA are expected to reveal more details about their collaboration and plans at the conference.

NVIDIA has made strategic investments in several companies in recent months as it sits at the center of the global AI trend.

In September, Nvidia invested $5 billion in former rival Intel and announced it would invest $1 billion in OpenAI, as well as $500 million in self-driving car startup Wayve and $667 million in British cloud service provider Nscale.

Reference: cnbc.com

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