Nvidia joins forces with this company for 6G technology, shares jump 22%
AI chipmaker Nvidia will soon acquire a $1 billion stake in Nokia. Nokia shares have surged 22% since the news. Nokia will issue over 166 million new shares and use the funds raised for AI and other general corporate purposes.
Nvidia and Nokia to Develop 6G Cellular Technology
The two companies have also partnered to develop next-generation 6G cellular technology. Nokia said it will optimize its 5G and 6G software to run on Nvidia’s chips and collaborate on networking technology for AI. Nokia further stated that Nvidia will consider incorporating its technology into its future AI infrastructure plans. Nokia, once a leader in the cellphone market, currently supplies 5G cellular equipment to telecom providers.
Nvidia’s Big Plan
This announcement comes as Nvidia CEO Jensen Huang prepares to address policymakers and government leaders at the company’s developer conference in Washington, D.C. Nokia and Nvidia are expected to discuss some of their collaborations and plans at the conference.
Nvidia has acquired several equity stakes in several companies in recent months. The company is currently engaged in efforts to dominate the AI market. Previously, Nvidia has announced its intention to invest $5 billion in Intel, $100 billion in OpenAI, $500 million in self-driving car startup Wayve, and $667 million in British cloud provider Nscale.
