Finnish telecom titan Nokia and AI chip powerhouse NVIDIA have unveiled a strategic alliance. NVIDIA is set to acquire over 166 million newly issued Nokia shares at a price of $6.01 per share, utilizing $1 billion in cash. Post-transaction, NVIDIA will secure a 2.90% ownership stake in Nokia. Prior to the announcement, trading of Nokia's American Depositary Receipts (ADRs) was temporarily halted. It is anticipated that these new shares will be listed as ADRs on multiple stock exchanges come November. Nokia's board of directors clarified that the decision to bypass shareholders' preemptive subscription rights was rooted in "significant financial considerations."

The primary goal of this partnership is to capitalize on the burgeoning AI-RAN (Artificial Intelligence-Radio Access Network) market and bolster the data center network infrastructure. Nokia intends to leverage this capital infusion to expedite its strategic initiatives. Furthermore, both entities are poised to collaborate on the development of AI network solutions. The formation of this alliance is propelled by the immense potential of the AI-RAN market, amidst the growing trend of integrating AI with communication networks. Additionally, the complementary strengths of both companies serve as a driving force behind this partnership.