Nvidia plans to make a $1 billion equity investment in Nokia, sending Nokia's intraday stock price up nearly 20%.

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NVIDIA has made new moves in the field of artificial intelligence infrastructure.

On October 28, according to media reports, NVIDIA plans to make a $1 billion equity investment in Nokia. Nokia's stock surged nearly 20% during intraday U.S. trading on Tuesday.

According to statements released by both companies on Tuesday, Nokia will issue approximately 166 million shares to NVIDIA at $6.01 per share, and NVIDIA will acquire a 2.9% stake in Nokia. The two parties will cooperate in 5G and 6G network software as well as AI infrastructure.

This investment is part of NVIDIA's recent large-scale spending plans. The company has already announced up to $100 billion in investment in OpenAI, as well as billions of dollars in investment in AI companies such as autonomous driving companies Wayve and Oxa, fintech company Revolut, and PolyAI.

According to the agreement, NVIDIA’s chips will be used to accelerate Nokia’s 5G and 6G network software, while NVIDIA will explore ways to use Nokia’s data center technology in its own AI infrastructure. This collaboration combines the core technological advantages of both companies to address the needs of network infrastructure in the AI era.

Nokia is known for selling mobile network equipment and has, in recent years, been expanding into the data center business. This business segment is experiencing rapid growth due to the surging demand for computing power fueled by the AI boom. Earlier this year, Nokia acquired Infinera Corp for $2.3 billion, further expanding its AI data center networking portfolio.

CEO Justin Hotard is leading Nokia through a major transformation, and last quarter’s performance, which exceeded expectations, indicates that the strategic transition is beginning to bear fruit.

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