Nokia and Xiaomi announced that 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.

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. Xiaomi also acquired patent assets from Nokia as part of the transaction.

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.

With presence in over 30 countries and regions, Xiaomi is well known for its smartphones packed with innovative technologies at disruptive prices. Beyond smartphones, Xiaomi is also a leading Internet of Things player. The Mi Ecosystem IoT platform has crossed 60 million connected devices, and there are now over 8 million daily active connected devices on the Mi Ecosystem platform.