"Nokia, best known for selling mobile network parts, has been pushing into data centers a business that's growing thanks to the growing demand for computing capacity from the artificial intelligence boom. The move has paid off, and helped Nokia beat Wall Street estimates last quarter. The Espoo, Finland-based company earlier this year bought Infinera Corp. for $2.3 billion to expand into networking products for AI data centers."
"The tie up could be a boost for the Nokia brand, which is still best known among consumers for the range of mobile phones it no longer makes. Chief Executive Officer Justin Hotard is leading a turnaround of the Nordic company, emphasizing its position as the only Western alternative to Huawei Technologies Co. for supplying the entire portfolio of communications kit, from 5G radios to fiber optic cables. Nvidia has been on a spending spree in recent months."
Nvidia plans a $1 billion equity investment in Nokia, acquiring about 166 million shares at $6.01 apiece for a 2.9% stake. Nvidia chips will be used to accelerate Nokia software for 5G and 6G networks and Nvidia will explore using Nokia's data center technology in its AI infrastructure. Nokia has shifted from mobile network equipment toward data centers to meet rising AI computing demand and acquired Infinera for $2.3 billion to expand networking products for AI data centers. Nokia shares surged after the announcement. Nokia positions itself as a Western alternative to Huawei across communications equipment while Nvidia expands AI investments.
Read at www.mercurynews.com
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