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Nvidia takes $1 billion stake in Nokia

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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)

Xavi Torrent | Getty Images News | 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.

The two companies also struck a strategic partnership to work together to develop next-generation 6G cellular technology. 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.

Nokia, a Finnish company, is best known for its early cell phones, but in recent years, it has primarily been a supplier of 5G cellular equipment to telecom providers.

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