Nvidia’s $1 Billion investment gives it a 2.9% stake in Nokia, strengthening a joint push into AI-driven 5G, 6G, and next-generation network technology.
Nvidia, the world’s most valuable chipmaker, has agreed to invest $1 billion in Nokia, acquiring a 2.9 percent equity stake as part of a deepening alliance aimed at advancing 5G, 6G, and artificial intelligence-powered network infrastructure.
The move expands an existing partnership between the two technology giants and underscores Nvidia’s growing influence beyond data centers and into telecom infrastructure. Under the deal, both companies will collaborate on developing advanced radio access network (RAN) systems and accelerating Nokia’s transition toward AI-optimized, cloud-based networking solutions.
Nokia said in a statement that it will issue 166.4 million new shares to Nvidia at $6.01 per share. The transaction, expected to close in November pending regulatory approvals, will be settled through American Depositary Shares listed on Nasdaq Helsinki, Euronext Paris, and the New York Stock Exchange.
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The Finnish telecom group said proceeds from the investment will support projects designed to “advance trusted connectivity for the AI supercycle,” while funding other general corporate initiatives. Executives expressed confidence that Nvidia’s strategic backing will help Nokia strengthen its leadership in software-defined networking for emerging technologies.
Under the collaboration, Nokia plans to develop 5G and 6G radio software on Nvidia’s AI-centric computing platforms. The two firms also intend to jointly expand their presence in the AI-RAN market, integrating Nokia’s data center switching and optical networking products with Nvidia’s future AI infrastructure.
Nokia emphasized that the investment benefits both its long-term strategy and shareholder value, noting that the $6.01 subscription price followed independent financial and legal reviews confirming its fairness.
According to transaction filings, the $1 billion investment equals roughly €0.86 billion, based on the European Central Bank’s exchange rate of 0.8591 USD/EUR as of October 27, 2025. Upon completion, Nokia’s total shares will rise to around 5.74 billion, with Nvidia holding approximately 2.9 percent of the enlarged share base.
The agreement represents more than a financial transaction—it positions both companies at the core of next-generation digital connectivity. By linking capital investment with technical collaboration, Nvidia and Nokia aim to shape the global rollout of AI-enhanced networks that will define the future of communications.
Africa Daily News, New York
