Nvidia formed a partnership with Nokia worth 1 billion dollars.

Collaboration Between Nvidia and Nokia

Nvidia has officially announced a significant step in the telecommunications sector by making a $1 billion investment in Nokia. This strategic collaboration will see Nvidia's developed chips being used in Nokia's cellular equipment production.

Strong Increase in Nokia Stocks

Following the agreement, a 20% increase in Nokia's stock value has been observed. This situation positively reflects market expectations, and it is anticipated that Nokia's transition to artificial intelligence and mobile network technologies will accelerate.

New Share Issuances and Targets

As part of this agreement, Nokia plans to issue approximately 166 million new shares, with a share price set at $6.01. The proceeds from the issued shares will be used to support the company's artificial intelligence projects and other corporate needs. This step is critical for Nokia's future growth strategies.

Strategic Partnership and Technology Development

Nokia and Nvidia will continue to collaborate on software development for 5G and 6G networks. Nvidia's chips will evaluate opportunities to utilize Nokia's data center technology in artificial intelligence infrastructure. Additionally, the two companies are expected to enhance their competitive advantages in the industry by jointly developing next-generation 6G technologies.

Nvidia's Strategic Investments

Nvidia has been continuing its ventures in the field of artificial intelligence recently. In September, the company invested $5 billion in Intel and made a commitment of $100 billion to OpenAI. Additionally, it invested $500 million in the autonomous vehicle initiative Wayve and $667 million in the cloud provider Nscale. Such strategic investments are considered important steps to strengthen Nvidia’s position in the industry.