Nvidia invests $1 billion in Nokia: shares of the Finnish company soar by 26%

American technology company Nvidia is investing $1 billion in Finland's Nokia to accelerate the development and deployment of next-generation mobile networks based on artificial intelligence. The companies announced this on Tuesday, October 28 .

After the news, Nokia shares jumped 26%, reports CNBC.

As part of the deal, Nokia will issue more than 166 million new securities. The deal will give Nvidia a 2.9% stake in the Finnish company. Nokia will use the proceeds to develop artificial intelligence projects and support its general corporate goals .

In addition, Nokia and Nvidia have entered into a strategic partnership to jointly develop sixth-generation (6G) communication technologies. Nokia plans to adapt its software solutions for 5G and 6G networks to work on Nvidia chips and to cooperate with the American company in the field of network technologies for artificial intelligence.

In recent months, Nvidia has acquired several stakes in strategic partners. In September, the company allocated $5 billion for investments to former rival Intel and announced that it would invest $100 billion in OpenAI .

The company has also invested $500 million in Wayve, a self-driving car startup, and $667 million in Nscale, a British cloud service provider.

• Nvidia is the world's most valuable company with a capitalization of more than $4.5 trillion and the market leader in semiconductor chips used in artificial intelligence computing.
• Nokia is best known for its early mobile phones, but is becoming the second largest player in the global fiber optics market. In recent years, it has primarily been a supplier of 5G cellular equipment to telecom operators.