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Nvidia has taken a $1 billion stake in Nokia, a move that instantly sent the Finnish telecom giant's shares soaring more than 26% on Tuesday, their highest level in nearly a decade. The investment cements a deeper partnership between the two companies, focused on artificial intelligence and the next generation of wireless networks.
Nokia confirmed it would issue over 166 million new shares to Nvidia at $6.01 per share, giving the U.S. chipmaker roughly a 2.9% stake in the company. The proceeds, Nokia said, will fund its ongoing transition into AI-driven network infrastructure and the development of 6G technology.
As part of the agreement, Nvidia and Nokia will collaborate on AI networking solutions, data center communications systems, and next-generation radio technology. The companies will also partner with T-Mobile US to begin trials of AI-powered 6G radio systems starting next year.
The announcement coincided with Nvidia CEO Jensen Huang's keynote speech in Washington, D.C., where he described the partnership as a "rebuilding of American telecommunications leadership." "Thank you for helping the United States bring telecommunication technology back to America," Huang said, addressing Nokia's new CEO, Justin Hotard.
Analysts called the deal a strong endorsement of Nokia's strategic direction. "Next-generation networks like 6G will define the AI era," said PP Foresight analyst Paolo Pescatore. "This partnership gives both firms a competitive advantage."
The move also signals Nvidia's growing dominance in global technology infrastructure. The company already holds a near-monopoly on supplying chips for AI data centers and recently announced multi-billion-dollar investments in Intel, OpenAI, and U.K.-based Nscale.
For Nokia, the investment is a lifeline after years of restructuring. The company, once synonymous with mobile phones, has refocused on telecom equipment and AI-driven connectivity. Under Hotard's leadership, who previously headed Intel's data center and AI group, Nokia has seen a rebound, posting stronger-than-expected profits last quarter thanks to rising demand for optical networking and AI-linked data systems.
