Nvidia opens its wallet again, this time supplying Nokia with a billion dollars for an AI-network partnership. Some are already dreaming of an AI-enhanced 3310.
Nokia has long been a staple in our pockets. The famous 3310 was known for surviving drops, toilet plunges, and speedy snakes. Today, the Finnish company is focusing on data centers, while Nvidia steps in with its chips and investment edge. Together, they are crafting something significant in the realm of 5G and 6G networks.
Nokia and Nvidia, an unexpected couple
Nvidia gains 2.9% of Nokia’s shares through a one billion dollar investment. A staggering amount for us, yet almost symbolic for a company already pouring 100 billion into OpenAI.
This agreement provides Nvidia access to Nokia’s expertise in ultra-fast networks. In turn, Nokia secures a strong ally to enhance its 5G and 6G software.
For your information, Nokia has not sold smartphones in quite some time. The company has opted to invest in the infrastructure of the future internet. It even acquired Infinera this year for 2.3 billion dollars, a company that excels in fiber optics and high-speed transmission. Data centers are in dire need of such technologies as AI models consume enormous quantities of data.
Nvidia enjoys forming partnerships, with each arrangement adding another layer to its technological empire. Nvidia’s chips are now at the heart of most AI infrastructures, and connecting these chips to Nokia’s networks promises even stronger performance for training and utilizing models. But Nokia also stands to benefit, as it will finally tap into the financial flow generated by AI.
For the European Union, however, this development may not be welcomed. The leaders are aiming for a more autonomous technological ecosystem. Yet Nvidia seamlessly integrates itself everywhere. Nokia remains a prominent European entity, despite the growing American investment. The debate between Brussels, Nvidia, and Finnish ambitions for future networks is likely to be lively.
