4 Minutes
Nvidia is making a high-profile $1 billion equity investment in Nokia, a move that ties one of the world’s leading AI-chip makers more closely to telecom infrastructure. The deal — subject to customary closing conditions — will see Nokia issue 166,389,351 new shares to Nvidia at a subscription price of $6.01 per share, giving Nvidia roughly a 2.90% stake in the Finnish company.
Why this investment matters for AI and connectivity
On paper it’s a clear capital infusion. In practice it signals a deeper strategy: Nvidia and Nokia are aligning to build AI-first connectivity across mobile networks and data centers. Nokia says it will use the proceeds to accelerate strategic plans aimed at "advancing trusted connectivity for the AI supercycle" and for general corporate purposes.
From 5G to AI-native RAN — what’s next
Nokia plans to speed development of 5G and 6G RAN software that runs on Nvidia’s architecture. That means radio access networks (RAN) reimagined to process intelligence closer to the edge and interoperate with AI data centers. Nokia will also invest to expand in the AI & Cloud market with networking solutions aligned to data center demands.
Collaboration beyond equity
Beyond the $1 billion purchase, the companies agreed to collaborate on AI networking solutions and explore integrating Nokia’s data center switching and optical technologies into Nvidia’s future AI infrastructure architecture. That could surface in faster, more efficient flows between massive AI clusters and the networks that connect them.
Field trials and U.S. partnerships: T-Mobile and Dell in the loop
T-Mobile U.S. will join Nvidia and Nokia to drive and test AI-RAN technologies as part of 6G innovation and development. Trials are expected to begin next year, focused on validating performance and efficiency gains in real-world conditions. The partnership also references Dell Technologies, signaling a broader U.S. ecosystem push.
Why is this framed as strategic for the U.S.? Nvidia’s founder and CEO Jensen Huang calls telecommunications a "critical national infrastructure — the digital nervous system of our economy and security," arguing AI-RAN built on Nvidia CUDA and AI will be a "generational platform shift" that helps restore U.S. leadership in this space.
What executives are saying
Justin Hotard, Nokia’s President and CEO, framed the move as more than an incremental step: "The next leap in telecom isn’t just from 5G to 6G — it’s a fundamental redesign of the network to deliver AI-powered connectivity, capable of processing intelligence from the data center all the way to the edge. Our partnership with Nvidia, and their investment in Nokia, will accelerate AI-RAN innovation to put an AI data center into everyone’s pocket."
Jensen Huang added: "Together with Nokia and America’s telecom ecosystem, we’re igniting this revolution, equipping operators to build intelligent, adaptive networks that will define the next generation of global connectivity."
Key takeaways
- Nvidia will take a ~2.90% stake in Nokia by purchasing 166,389,351 new shares at $6.01 each.
- Nokia will use funds to accelerate AI-ready connectivity plans and expand in AI & Cloud networking.
- Both companies will collaborate on AI networking, and Nokia’s data center switching and optical tech could feed into Nvidia’s AI infrastructure.
- T-Mobile U.S. (with Dell Technologies mentioned) will participate in AI-RAN trials starting next year to validate performance and efficiency in the field.
For industry watchers, the deal signals a coordinated push to blur the line between telecom networks and AI data centers. Expect announcements and technical trials in the coming months as the partners start to demonstrate what an AI-native wireless network looks like in practice.
Source: gsmarena
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