BARCELONA, SPAIN - FEBRUARY 26: A logo sits illuminated at the Nokia booth in the Mobile World Congress 2024 on February 26, 2024 in Barcelona, Spain. (Photo by Xavi Torrent/Getty Images)
Nokia announced on Tuesday that Nvidia will purchase $1 billion in new Nokia shares, the latest equity stake in a strategic partner for the AI chip giant.
Nokia shares soared 20% higher following the news.
Nokia will issue over 166 million new shares. Nokia said that it would use the proceeds to fund its plans for AI and other general corporate purposes.
The two companies also struck a strategic partnership to work together to develop next-generation 6G cellular technology. Nokia said that it would adapt its 5G and 6G software to run on Nvidia's chips, and will collaborate on networking technology for AI.
Nokia said Nvidia would consider incorporating its technology into its future AI infrastructure plans.