Nokia announced on Tuesday that Nvidia is taking a $1 billion equity stake in the company, marking a major strategic partnership between the Finnish telecom equipment maker and the world’s leading artificial intelligence chip manufacturer. Following the announcement, Nokia’s shares surged by 22 percent, reflecting strong investor confidence in the collaboration and its potential to shape the next generation of connectivity and AI-driven network solutions.
As part of the agreement, Nokia will issue over 166 million new shares, with proceeds directed toward its AI initiatives and other corporate programs. The two companies have also entered into a strategic partnership to develop advanced networking technologies for 6G and artificial intelligence integration. Nokia stated that it plans to optimize its 5G and upcoming 6G software to run on Nvidia’s AI chips, allowing for faster, more efficient, and adaptable communication systems. Nvidia, in turn, will evaluate incorporating Nokia’s networking solutions into its own AI infrastructure roadmap, aligning both companies’ goals toward creating intelligent, interconnected systems for the future.
Nokia, long recognized for its role in mobile technology evolution, has in recent years repositioned itself as a major supplier of 5G equipment to global telecom operators. The partnership with Nvidia signals its deeper commitment to integrating AI across its technology stack, expanding its competitiveness in a market increasingly driven by automation and intelligent network management. The move also supports Nokia’s ongoing transformation from a traditional telecommunications supplier to a software-focused technology company. For Nvidia, the investment reinforces its growing influence beyond AI hardware into network infrastructure, providing it with opportunities to embed its technologies deeper into the global communications ecosystem.
The announcement coincides with Nvidia CEO Jensen Huang’s upcoming address at the company’s developer conference in Washington, D.C., where he is scheduled to speak before policymakers and technology leaders. Both Nvidia and Nokia are expected to share more insights on their collaboration during the event. The partnership represents one of several recent strategic equity moves by Nvidia as it expands its role across various technology sectors. Over the past few months, Nvidia has committed multi-billion-dollar investments into different companies, including a $5 billion stake in Intel, a $100 billion investment pledge in OpenAI, $500 million in self-driving car company Wayve, and $667 million in U.K.-based cloud provider Nscale.
Nvidia’s investment in Nokia further highlights its broader ambition to support industries driving global digital infrastructure. For Nokia, this collaboration strengthens its ability to scale AI integration into networking products while exploring new use cases for intelligent connectivity. The partnership is viewed as a pivotal step for both companies as they position themselves at the forefront of next-generation communications and artificial intelligence development.
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