In a landmark collaboration that bridges telecommunications and artificial intelligence, NVIDIA has announced a $1 billion equity investment in Nokia, marking the beginning of a deep strategic partnership to develop AI-powered radio access networks (AI-RAN) and data centre networking solutions.
The partnership signals a convergence between AI computing and next-generation connectivity as both companies prepare for the era of 5G, 6G, and cloud-native networks. Nokia’s Board of Directors has approved the issuance of 166.4 million new shares to NVIDIA at a price of $6.01 (EUR 5.16) per share, giving the U.S. chipmaker an estimated 2.9% stake in Nokia’s total share capital.
“The strategic partnership and investment are expected to create value for both companies,” Nokia stated, adding that proceeds from the share sale will accelerate its transformation toward trusted, AI-driven connectivity infrastructure and fund general corporate initiatives tied to its long-term vision.
Integrating AI into the Future of Connectivity
As part of the alliance, Nokia plans to optimise its 5G and 6G RAN software to run on NVIDIA’s accelerated computing architecture. This integration will enhance network performance, reduce latency, and expand the use of AI in network automation and optimization.
In addition to telecom software, Nokia’s Network Infrastructure division will collaborate with NVIDIA to build data centre-aligned networking solutions, aligning with the growing need for high-performance, energy-efficient AI infrastructure. The companies will explore combining Nokia’s optical and data centre switching technologies with NVIDIA’s AI networking stack, strengthening both firms’ positions in the competitive AI infrastructure landscape.
The partnership also reflects Nokia’s efforts to diversify its revenue streams and reposition itself beyond telecommunications hardware into AI-enabled cloud networking. Analysts suggest this deal could elevate Nokia’s relevance in hyperscaler ecosystems — a space increasingly dominated by partnerships between AI and cloud technology leaders.
Strengthening Market Position and Global Reach
NVIDIA’s equity purchase is expected to be finalized by November 2025, with the new shares listed on Nasdaq Helsinki, Euronext Paris, and the New York Stock Exchange. Once registered, Nokia’s total shares will increase to 5.74 billion, solidifying the U.S. company’s minority stake.
“The collaboration underscores how 5G and AI are becoming inseparable technologies,” one analyst noted. “By integrating AI directly into radio access networks and data centre fabrics, NVIDIA and Nokia are setting the blueprint for intelligent connectivity in the 6G era.”
This partnership marks a pivotal chapter for both companies — for NVIDIA, it extends its dominance in AI computing into telecom-grade networks; for Nokia, it offers renewed momentum in the AI-powered connectivity race. Together, the firms are betting on an AI supercycle that will redefine how networks learn, scale, and evolve across industries.
