Khaberni - After more than a century and a half of industrial and digital transformations, the Finnish company Nokia enters a new phase of self-reinvention, this time through a bold bet on artificial intelligence and data centers.
Historically known for its paper and rubber manufacturing, and then for its mobile phones which dominated the markets for decades, Nokia is now repositioning itself at the heart of the modern technological revolution.
According to Bloomberg, the partnership formed with American tech giant Nvidia represents a "qualitative leap" in the company's path toward the digital future.
A billion-dollar investment reshapes Nokia
Bloomberg explained that Nvidia acquired a 2.9% stake in Nokia valued at one billion dollars, as part of a strategic collaboration aimed at integrating its advanced computing chips in the software for the fifth and sixth generation networks (5G and 6G) being developed by the Finnish company.
Nvidia will also benefit from Nokia's data center expertise to enhance its infrastructure for artificial intelligence.
Jensen Huang, CEO of Nvidia, said in an interview with "Bloomberg TV" that he invested in Nokia because he is "extremely excited about the work we are doing together," describing the cooperation between the two companies as "a truly brilliant idea."
New leadership embraces digital transformation
This transformation comes under the leadership of the new CEO, Justin Hotrad, who previously led the artificial intelligence division at Intel, as he seeks to transform Nokia into a major player in the global AI infrastructure.
Bloomberg mentioned that the company continues its historic tradition of industrial metamorphosis with each technological era, having shifted in 2013 from manufacturing mobile phones to communication network equipment.
A bet on the future
Analysts cited by Bloomberg see this partnership as reflecting a deeper transformation in Nokia's identity as a comprehensive technology company, betting that the integration of artificial intelligence in communication networks and data centers will give it a competitive edge in the coming decade.
The report added that the collaboration with Nvidia places Nokia in a unique strategic position between communication infrastructure and artificial intelligence, at a time when major companies are racing to build the next generation of smart computing.
Bloomberg said that Nokia "hitches its wagon today to one of the strongest horses of the 21st century," referring to its partnership with Nvidia, which is viewed as a major turning point in the Finnish company's journey towards a future that relies on artificial intelligence as the core of its new industry.
