Nvidia to Invest $1 Billion in Nokia to Boost AI and 6G Innovation

Nvidia has announced a major investment in Nokia, marking a significant partnership between two tech giants. The U.S.-based chipmaker, Nvidia, will invest $1 billion in the Finnish telecom company, Nokia. The investment will be made through an equity deal at a subscription price of $6.01 per share, giving Nvidia a 2.9% ownership stake in Nokia.

According to the official statement, Nokia will issue over 166 million new shares to Nvidia as part of this agreement. The deal is still subject to certain regulatory and customary closing conditions.

Nvidia to Invest $1 Billion in Nokia to Boost AI and 6G Innovation

Nokia said it plans to use the proceeds from this investment to speed up its strategic goals. The company aims to “advance trusted connectivity for the AI supercycle” and invest in AI-driven networking technologies. They will also use part of the funds for general corporate purposes.

A key focus will be on developing its 5G and 6G Radio Access Network (RAN) software to run on Nvidia’s advanced architecture. Nokia also intends to strengthen its presence in the AI and cloud computing markets through new data center networking solutions.

The partnership goes beyond financial investment. Both companies will collaborate on AI-powered networking solutions. They plan to combine Nokia’s data center switching and optical technologies with Nvidia’s AI infrastructure platforms.

This collaboration will create smarter, more efficient networks that can support the next wave of digital transformation.

Nokia and Nvidia to test and develop AI-RAN (Artificial Intelligence Radio Access Network) technologies. These trials are set to begin next year. The goal is to validate the performance and energy efficiency improvements that AI can bring to telecom networks, particularly as the world transitions from 5G to 6G.

Leaders Speak on the Partnership

Nokia’s President and CEO, Justin Hotard, called the move a major step forward. “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,” he said. “Our partnership with Nvidia will accelerate AI-RAN innovation and help bring AI data centers closer to users.”

He also noted that working with Nvidia, Dell Technologies, and T-Mobile will ensure that the U.S. continues to lead in next-generation connectivity.

Jensen Huang, founder and CEO of Nvidia, emphasized the importance of telecommunications as a national asset. “Telecommunications is a critical national infrastructure — the digital nervous system of our economy and security,” he said. “AI-RAN will revolutionize telecommunications and help the U.S. regain global leadership in this key technology.”

This partnership highlights how AI and connectivity are merging to shape the future of communication networks. With Nvidia’s AI expertise and Nokia’s telecom strength, the collaboration aims to deliver faster, smarter, and more adaptive networks — laying the foundation for the 6G era.