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Xiaomi and Nokia teaming up to work on VR, AI and more

A deal signed by the two companies will see Xiaomi acquiring patent assets from Nokia in exchange for network infrastructure equipment.


The Nokia 3310

Xiaomi is bolstering its patent portfolio as its global ambitions start to take flight.

The Chinese phone manufacturer signed an agreement with Nokia today dealing with cross licensing of cellular patents, while also agreeing to work with Nokia in areas such as the Internet of Things, virtual reality and artificial intelligence. Nokia will also be transferring patent assets to the company.

Nokia, on the other hand, will supply network infrastructure equipment used by web providers and datacenter operators. It will also work with Xiaomi on technologies related to Nokia's new FP4 network processor.

The agreement between both companies comes about even as both companies look for ways to dominate the phone markets again. Xiaomi has seen its lead slip away to rivals Oppo and Vivo in China, while Nokia is looking to bounce back into the phone business after a disastrous stint with Windows-powered devices. The patent agreement will likely benefit Xiaomi as it looks towards the US market in the future.

"Xiaomi is one of the world's leading smartphone manufacturers and we are delighted to have reached an agreement with them," said Rajeev Suri, Nokia's CEO in a statement.

"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," said Lei Jun, Xiaomi's CEO

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