Nokia and Chinese smartphone maker Xiaomi said Wednesday they have signed a business collaboration agreement and a multi-year patent agreement, including a cross license to each company's cellular standard essential patents.
Xiaomi also acquired patent assets from Nokia as part of the transaction.
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.