New Delhi: Nvidia has recently agreed that they are going to invest $1 billion in Nokia, and is taking a 2.9% stake in the Finnish telecommunications equipment maker as part of a strategic partnership, which is focused on developing the next-generation wireless technology and AI infrastructure. This is going to mark the latest in the series of equity investments by Nvidia as the AI chipmaker leverages its position in the AI boom to forge strategic alliances across multiple industries in the world.
Nokia is going to issue more than 166 million new shares to Nvidia, raising approximately $1 billion for the company. The shares will be delivered to Nvidia in the form of American Depositary Shares and are expected to be registered with the Finnish Trade Register in November. Nokia has also stated that it will use the proceeds to accelerate its strategic plans to advance trusted connectivity for the AI supercycle and other general corporate purposes, which include investments in AI and cloud market initiatives within its Network Infrastructure business.
However, after focusing on the financial statement, these two companies struck a comprehensive strategic partnership with several key components, including the latest 6G development, software optimisation, AI networking solutions, and data centre integration. Nokia stated that Nvidia would consider incorporating Nokia’s technology into its future AI infrastructure plans, suggesting potential but not guaranteed integration. Nvidia has invested in several companies, including the most popular chatbot ChatGPT maker OpenAI, pledging to invest up to $100 billion in the company over time. This follows an initial $100 million investment made in October 2024 as part of $6.6 billion funding round. It also invested in Intel to partner with its one-time rival on AI infrastructure and personal computing products.
