The two leading names in the technology space, Nokia and Xiaomi, have signed a business agreement and a multi-year patent agreement, which includes a cross license to each company's cellular standard essential patents.
Under the business cooperation agreement, Nokia will provide network infrastructure equipment designed to deliver the high capacity, low power requirements expected by large web providers and datacenter operators. Nokia and Xiaomi will work together on optical transport solutions for datacenter interconnect, IP Routing based on Nokia's newly announced FP4 network processor, and a data center fabric solution. In addition, the companies have agreed to explore opportunities for further cooperation, in areas such as Internet of Things, augmented and virtual reality, and artificial intelligence.
Xiaomi has also acquired patent assets from Nokia as part of the transaction.
"Xiaomi is one of the world's leading smartphone manufacturers and we are delighted to have reached an agreement with them," said Rajeev Suri, President & CEO of Nokia. "In addition to welcoming such a prominent global technology company to our family of patent licensees, we look forward to working together on a wide range of strategic projects."
Lei Jun, Chairman and CEO of Xiaomi. "Xiaomi is committed to building sustainable, long-term partnerships with global technology leaders. Our collaboration with Nokia will enable us to tap on its leadership in building large, high performance networks and formidable strength in software and services, as we seek to create even more remarkable products and services that deliver the best user experience to our Mi fans worldwide."