Nokia reinvents itself with NVIDIA algorithms.. Will it succeed? | economy

After more than a century and a half of industrial and digital transformations, Finnish company Nokia is entering a new phase of self-reinvention, this time through a bold bet on artificial intelligence and data centers.

After being known historically for the paper and rubber industry, then for its mobile phones that dominated the markets for decades, it is once again positioned today at the heart of the modern technological revolution.

According to Bloomberg, the partnership it concluded with the American technology giant NVIDIA represents a “quantum shift” in the company’s path towards the digital future.

A billion dollar investment reshapes the features of Nokia

Bloomberg explained that NVIDIA acquired a 2.9% stake in Nokia shares, worth up to $1 billion, as part of a strategic cooperation aimed at integrating its advanced computing chips into software for the fifth and sixth generation networks (5G and 6G) ​​developed by the Finnish company.

NVIDIA will also benefit from Nokia’s data center expertise to improve its AI infrastructure.

Jensen Huang, CEO of NVIDIA, said in an interview with “Bloomberg TV” that he invested in Nokia because he is “very passionate about the work we are doing together,” describing the cooperation between the two companies as “a truly genius idea.”

New leadership embraces digital transformation

This transformation comes under the leadership of new CEO Justin Hotrad, who previously led Intel’s AI division, as he seeks to transform Nokia into a major player in the global AI infrastructure.

Bloomberg reported that the company is thus continuing its historical tradition of changing its artificial skin with every technical era, after it switched in 2013 from manufacturing mobile phones to telecommunications network equipment.

A bet on the future

Analysts quoted by Bloomberg believe that this partnership reflects the deeper shift in Nokia’s identity as an integrated technology company, as it is betting that integrating artificial intelligence into communications networks and data centers will give it a competitive advantage in the next decade.

The report added that cooperation 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 new generation of smart computing.

Bloomberg said that Nokia is “attaching its cart today to one of the most powerful horses of the 21st century,” referring to its partnership with NVIDIA, which is seen as a major turning point in the Finnish company’s march towards a future that depends on artificial intelligence as the heart of its new industry.