Nokia Oyj said its board has approved a directed share issue to Nvidia Corp., paving the way for a $1 billion equity investment that deepens cooperation on next-generation mobile networks and artificial intelligence infrastructure.

Under the plan, Nokia will issue 166,389,351 new shares to Nvidia at a subscription price of $6.01 each, contingent on customary closing conditions. The deal will give the U.S. chipmaker a 2.9% stake in the Finnish telecom equipment provider.

The partnership will see Nokia adapt its 5G and 6G software to run on Nvidia’s chips, while Nvidia will explore integrating Nokia’s data center technologies into its AI infrastructure offerings, Nokia said.