Nvidia takes $1B stake in Nokia as part of strategic partnership

Nokia (NOK) said its board has resolved to issue 166.4M new shares in a directed share issuance to enable Nvidia (NVDA) to make a $1B equity investment in Nokia. Nvidia will subscribe for the shares at a subscription price of $6.01 per share. The transaction will see Nvidia become a 2.90% shareholder of Nokia. “The strategic partnership and investment are expected to create significant value for both companies. Nokia will use the proceeds from the issuance to accelerate its strategic plans to advance trusted connectivity for the AI supercycle and other general corporate purposes. Nokia intends to accelerate development of Nokia’s 5G & 6G RAN software to run on NVIDIA’s architecture and will make investments to drive Nokia’s strategic goal of increasing its presence in the AI & Cloud market with data center aligned networking solutions within its Network Infrastructure business. Nokia and NVIDIA have agreed to collaborate on AI networking solutions and explore opportunities to incorporate Nokia’s data center switching and optical technologies in NVIDIA’s future AI infrastructure architecture,” Nokia said in a statement.