Nvidia has announced a $1 billion equity investment in Nokia, marking a major step toward strengthening collaboration in artificial intelligence (AI), cloud, and next-generation connectivity technologies.
The investment, priced at $6.01 per share, will see Nokia issue 166,389,351 new shares to Nvidia, representing a 2.9% ownership stake in the Finnish telecommunications giant.
According to Nokia, the proceeds from this investment will be used to accelerate its strategic initiatives to advance trusted connectivity during the emerging AI supercycle.
The funds will also support Nokia’s development of 5G and 6G RAN (Radio Access Network) software, which will now be optimized to run on Nvidia’s advanced AI architecture. Additionally, Nokia plans to expand its presence in the AI and cloud markets by developing data center-focused networking solutions.
The collaboration between the two tech leaders extends beyond financial investment. Nokia and Nvidia have agreed to jointly develop AI-driven networking solutions, combining Nokia’s expertise in data center switching and optical technologies with Nvidia’s leadership in AI infrastructure. The goal is to create more intelligent, efficient, and adaptive network systems for future telecom generations.
In a related announcement, T-Mobile U.S. will join Nokia and Nvidia to test AI-RAN technologies as part of the 6G innovation process. These field trials, expected to begin next year, will evaluate how AI can enhance wireless performance and network efficiency for customers.
Nokia President and CEO Justin Hotard emphasized that the next leap in telecommunications goes beyond 5G and into AI-powered connectivity. “Our partnership with Nvidia will accelerate AI-RAN innovation, putting AI data center power into everyone’s pocket,” he said.
Nvidia CEO Jensen Huang echoed this vision, calling telecommunications the “digital nervous system of our economy.” He added that AI-RAN represents a “generational platform shift” that will enable the U.S. to lead in global connectivity innovation.
The partnership marks a significant milestone in merging AI computing with telecommunications, paving the way for smarter, faster, and more secure digital infrastructure worldwide.