Nvidia is acquiring a $1 billion stake in Nokia, the artificial intelligence chipmaker's latest partnership. Nokia's shares soared 22% after the news broke. Nokia will issue more than 166 million new shares and will use the proceeds to fund its AI initiatives and other general corporate purposes.

The two companies have also reached a strategic partnership to jointly develop next-generation 6G cellular technology. Nokia said it will adapt its 5G and 6G software to run on Nvidia's chips and will collaborate on network technology in the field of artificial intelligence.

Nokia said Nvidia would consider incorporating its technology into its future AI infrastructure plans.

Nokia, the Finnish company, was best known for its early mobile phones, but in recent years it has primarily become a supplier of 5G equipment to telecom operators.

The announcement comes as Nvidia CEO Jensen Huang prepares to deliver a keynote speech at the Developer Conference in Washington, D.C., to present the company's latest developments to policymakers and government leaders.

Nokia and Nvidia are expected to discuss some of their collaborative projects and future plans at the conference.

In recent years, NVIDIA has gradually consolidated its core position in the AI ​​field by investing in strategic partners. Recently, NVIDIA has announced a number of major investment plans.

In September, Nvidia announced an investment of US$5 billion in former competitor Intel and said it would invest US$100 billion to support OpenAI. In addition, Nvidia invested US$500 million to support self-driving car startup Wayve and made a US$667 million investment in British cloud service provider Nscale.