Nvidia made a 1 billion dollar investment in Nokia!

Nvidia and Nokia's Strategic Partnership

Nvidia, recognized as a technology giant with a leading position in the artificial intelligence sector, has made a significant move by investing 1 billion dollars in Nokia Oyj. This investment aims to accelerate Nokia's transition from mobile network hardware to artificial intelligence technologies.

Investment Details

According to a joint statement made on Tuesday, Nokia will issue approximately 166 million new shares at a price of 6.01 dollars per share for Nvidia. With this transaction, Nvidia will acquire a 2.9% stake in Nokia.

The Future of 5G and 6G Network Software

Within the scope of this strategic partnership, Nvidia's chips will be used to optimize Nokia's 5G and 6G network software. Additionally, joint efforts by the two companies will involve research on the integration of Nokia's data center technology into Nvidia's artificial intelligence infrastructure.

Nokia's Data Center Goals

Known for its mobile network equipment, Nokia aims to grow in the data center market to take advantage of the increasing demand for computing capacity driven by the artificial intelligence revolution. Earlier this year, it had acquired Infinera Corp. for 2.3 billion dollars to enhance its capabilities in network products aimed at artificial intelligence data centers.

Rise in Nokia Shares

Following Nvidia's investment announcement, Nokia shares rose by 17% on the Helsinki Stock Exchange, marking the highest daily gains since 2013.

Artificial Intelligence and the Future of Europe

Continuing to increase its investments, Nvidia has announced plans to invest 100 billion dollars in OpenAI and to fund many other initiatives. Additionally, according to Bloomberg News, there is an artificial intelligence-focused data center project in Germany in collaboration with Deutsche Telekom AG.

Domestic and foreign technology leaders emphasize the need for Europe to strengthen its own artificial intelligence ecosystem, while Nvidia CEO Jensen Huang criticizes Europe for lagging in this process.