Nvidia Invests $1 Billion in Nokia, Signaling Major AI Infrastructure Partnership

Nvidia's Strategic Investment in Nokia

Nvidia has announced a $1 billion investment in Nokia, acquiring a 2.9% stake in the Finnish telecommunications company through the purchase of 166.4 million new shares at $6.01 each 1

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. The announcement sent Nokia's stock soaring by 25% in Tuesday trading, marking the company's steepest one-day gain in nearly a decade 4

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This investment represents Nvidia's latest bet on AI infrastructure plays, following previous strategic investments in companies like AI cloud computing provider CoreWeave and AI chip designer Arm 1

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. Nokia plans to use the proceeds to "accelerate its strategic plans to advance trusted connectivity for the AI supercycle and other general corporate purposes" 1

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AI-RAN Technology Partnership

The collaboration extends beyond financial investment to include the development of AI-RAN (Radio Access Network) technology. Nokia will add a new AI-RAN product to its global access portfolio based on Nvidia's platform, with the partnership launching alongside Nvidia's Arc Aerial RAN Computer, a 6G-ready platform designed for next-generation telecom workloads 2

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T-Mobile is working with both companies to integrate AI-RAN into its 6G development program, while Dell Technologies will supply PowerEdge servers to power the joint AI-RAN offering 2

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. Industry executives view this collaboration as marking a shift toward AI-native 6G by pushing AI-RAN into real-world commercialization at global scale 2

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Nokia's AI Infrastructure Transformation

Under CEO Justin Hotard, who formerly led Intel's Data Center and AI division, Nokia has been transitioning from a traditional 5G supplier to a key player in AI network infrastructure 4

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. The company's Q3 2025 results showed revenue rising 11.6% year-over-year to €4.83 billion, driven by strong AI-related demand 4

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Nokia's Optical Networks segment expanded 19% year-over-year, fueled by hyperscale demand and large AI computing clients, while the Cloud and Network Services division rose 13% as operators upgraded their 5G cores to handle AI-intensive workloads 4

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Strategic Implications for AI and 6G

The partnership positions both companies to capitalize on the convergence of AI and telecommunications infrastructure. Nokia and Nvidia claim that fast and secure telecommunications tools are critical national infrastructure, as AI-powered applications are increasingly being delivered via smartphones and mobile devices 3

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. The collaboration aims to support the explosion in AI-native edge devices, with Nokia CEO Hotard wanting to "put an AI data center into everyone's pocket" 3

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As part of the growth strategy, Nokia will make its 5G and forthcoming 6G software capable of running on Nvidia's chips and related equipment, while the companies will work together to integrate Nokia's switching and optical technologies into Nvidia's AI offerings 3

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