NVIDIA Corporation is making a decisive move into telecommunications with a USD 1 billion equity investment in Nokia Corporation, acquiring approximately a 2.9% stake via a directed share issuance priced at USD 6.01 per share.
The deal isn’t just financial—it forms the cornerstone of a strategic partnership between Nvidia and Nokia to co-develop next-generation network infrastructure, including AI-native Radio Access Networks (AI-RAN) and preparation for the transition from 5G to 6G. Nokia will leverage the partnership to evolve its 5G/6G RAN software to run on Nvidia’s architecture, while Nvidia will explore Nokia’s data-centre switching and optical technologies as part of its expanding AI infrastructure.
Nokia’s board approved the share issuance, which involves issuing 166,389,351 new shares and is expected to close following customary regulatory and operational conditions.
The market reaction was strong: Nokia shares surged approximately 20%-26%, hitting their highest level in nearly a decade, reflecting investor confidence in the growth potential of AI-driven telecommunications and the company's renewed strategic direction.
This move underscores Nvidia’s broader strategy of deepening its footprint beyond AI hardware into global network ecosystems—integrating compute, connectivity, and intelligence for the next wave of digital infrastructure. For Nokia, the investment provides not only substantial capital but also access to Nvidia’s cutting-edge technology ecosystem, positioning it to compete more aggressively in the AI-powered telecom era.
In sum, the Nvidia-Nokia alliance represents a critical juncture at the intersection of AI, cloud infrastructure, and telecom networks, signalling that the future of connectivity will be defined not just by wireless speed, but by intelligence and integration.
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