On October 28, 2025, Nvidia Corporation announced a $1 billion equity investment in Nokia Oyj, acquiring roughly a 2.9% stake through a directed share issuance. The move marks the beginning of a strategic partnership designed to blend Nokia’s network-infrastructure strength with Nvidia’s artificial intelligence and data-center technologies.
Strengthening the AI-Network Backbone
Under the agreement, Nokia will issue around 166.39 million new shares to Nvidia, positioning the AI giant among Nokia’s largest shareholders. The collaboration will integrate Nokia’s data-center switching and optical systems with Nvidia’s AI infrastructure to develop AI-enabled radio access network (RAN) solutions. These innovations are expected to play a key role in future 6G networks.
The market reacted swiftly to the announcement. Nokia’s stock surged between 15% and 19% on both the Helsinki and New York exchanges. Analysts viewed the deal as part of Nvidia’s broader effort to move beyond chipmaking and into the networking systems that sustain AI-driven data centers. The partnership reflects a growing interdependence between AI hardware suppliers and telecom infrastructure companies.
A Strategic Shift for Nokia
For Nokia, the investment arrives at a pivotal time. Once best known for its telecom hardware, the company is rapidly evolving into a provider of AI and cloud-network services. The Nvidia collaboration builds upon their 2024 initiative to create AI-ready Cloud RAN solutions powered by Nvidia’s Grace CPU/Arm platform and Nokia’s In-Line accelerator and software framework.
This transition underscores Nokia’s broader goal of modernizing network performance while enabling AI-driven automation across communication systems. With Nvidia’s backing, the company aims to accelerate innovation and strengthen its foothold in the next generation of digital infrastructure.
The Broader Implications
The Nvidia-Nokia deal highlights the growing convergence between AI, telecom networks, and data-center technologies. If executed successfully, it could provide significant advantages for both firms—allowing Nvidia to deepen its integration into global communication systems and helping Nokia fast-track its AI transformation.
Investors and industry observers will now watch closely to see whether this collaboration translates into tangible growth and new revenue opportunities. The partnership’s success will hinge on how effectively the two companies integrate their technologies amid fierce competition in the AI infrastructure sector.
