Nokia announced on Tuesday that Nvidia will purchase $1 billion in new Nokia shares, the latest equity stake in a strategic partner for the artificial intelligence chip giant. Nokia shares soared 18% higher following the news. 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. The two companies also struck a strategic partnership to work together to develop next-generation 6G cellular technology. Nokia said that it would adapt its 5G and 6G software to run on Nvidia’s chips, and will collaborate on networking technology for AI. Nokia said Nvidia would consider incorporating its technology into its future AI infrastructure plans.

Full story : Nvidia plans to invest $1 billion in Nokia for a 2.9% stake in the company, an apparent vindication of the Finnish company’s pivot from mobile networking to AI.