Nvidia Corp plans to invest $1 billion in Nokia, acquiring a 2.9% stake as part of a new strategic partnership focused on advancing artificial intelligence in telecommunications. Nokia will issue approximately 166 million shares to Nvidia at $6.01 each. This move supports Nokia’s shift from traditional mobile networking equipment toward AI-driven technologies, particularly in 5G and forthcoming 6G networks.

Nvidia's chips will accelerate Nokia’s software for next-generation networks, while both companies will collaborate to integrate Nokia’s data center technology into Nvidia’s AI infrastructure. The partnership marks a significant step toward delivering AI-native wireless networks, with T-Mobile US expected to begin trials of AI-RAN (AI Radio Access Network) technology next year. Nvidia CEO Jensen Huang highlighted plans to supply Nokia with programmable wireless computers capable of running AI processing and managing mobile traffic simultaneously.

Nokia, traditionally known for mobile network hardware, has been expanding into data centers to meet growing demands fueled by the AI boom. Earlier this year, Nokia acquired Infinera Corp for $2.3 billion to strengthen its presence in networking products for AI data centers. The partnership with Nvidia, alongside its investment, reflects Nokia's strategic focus on accelerating AI-RAN innovation and transitioning from 5G to 6G networks.

Following the announcement, Nokia’s shares surged over 21% in Helsinki, marking the highest increase since 2013. Industry analysts see this collaboration as vital for the future of telecom, combining Nvidia’s AI chip dominance with Nokia’s global telecom expertise to capture the growing AI-driven data center and network market.

In sum, this alliance aims to revolutionize telecom infrastructure by embedding AI at every layer, enabling smarter, faster, and more efficient networks that will power the next generation of mobile and edge computing services globally.