Nvidia has acquired a $1 billion stake in Nokia, the Finnish telecom company announced on Tuesday. Following the news, Nokia shares rose by 22% on Wednesday, signaling strong investor confidence in the strategic partnership.
As part of the deal, Nokia will issue over 166 million new shares. The funds raised will support the company’s AI development, 6G technology, and other corporate initiatives. The investment also marks the beginning of a strategic collaboration between Nokia and Nvidia to advance next-generation wireless and AI networking solutions.
Nokia plans to integrate its existing 5G and upcoming 6G software with Nvidia’s advanced chips. Both companies will work together to develop AI-ready networking infrastructure. Additionally, Nvidia may leverage Nokia’s networking technologies in its future AI projects, further strengthening the partnership.
The announcement coincides with Nvidia CEO Jensen Huang’s visit to Washington, D.C., where he is expected to present Nvidia’s vision to lawmakers and industry leaders at the company’s developer conference. Further updates on the Nokia-Nvidia collaboration are anticipated during the event.
This investment is part of Nvidia’s broader strategy to acquire stakes in major technology companies. Recent investments include $5 billion in Intel, $100 billion in OpenAI, $500 million in autonomous driving startup Wayve, and $667 million in UK cloud company Nscale.
Industry experts say Nvidia’s stake in Nokia strengthens both companies’ positions in the telecom and AI sectors. For Nokia, the partnership provides access to Nvidia’s cutting-edge chip technology, while Nvidia benefits from Nokia’s expertise in wireless infrastructure.
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Analysts note that the collaboration could accelerate the development of 6G networks and AI-powered networking solutions, benefiting global telecom and technology markets. The move demonstrates Nokia’s commitment to innovation and Nvidia’s ambition to expand its influence in AI and networking technologies.
