Nvidia Corp. plans to make a $1 billion equity investment in Nokia Oyj, betting on the Finnish company’s strategic pivot from traditional mobile networking toward artificial intelligence (AI) and data center technologies.
The move marks a major endorsement from the world’s most valuable chipmaker, further highlighting how AI infrastructure is reshaping the global technology landscape.
Nvidia takes 2.9% stake in Nokia
Under the terms of the agreement announced Tuesday, Nokia will issue about 166 million new shares to Nvidia at $6.01 per share, giving the US-based chipmaker a 2.9% ownership stake in the company.
Nokia shares surged as much as 17% in Helsinki trading, their biggest intraday jump since 2013, while US-listed Nokia stock climbed 19% to $7.53.
Nvidia shares were up 1.1%, while other network equipment makers such as Arista Networks and Ciena slipped around 0.4% each.
The partnership will see Nvidia’s chips integrated into Nokia’s radio access network (RAN) software to enhance performance for 5G and 6G connectivity.
At the same time, Nvidia will explore incorporating Nokia’s data center technologies into its own AI infrastructure.
Both companies described the deal as a step toward developing advanced AI networking solutions capable of meeting the surging global demand for computing capacity.
Nokia’s strategic pivot to AI and data centers
Best known for its legacy in mobile networks, Nokia has been steadily repositioning itself as a key player in AI-driven connectivity and data infrastructure.
The company’s push into data center technology—fueled by rising demand from AI workloads—has already begun to pay off.
Nokia recently beat Wall Street earnings estimates, aided by growth in its new business lines.
Earlier this year, Nokia acquired US-based Infinera Corp. for $2.3 billion, expanding its portfolio to include networking products optimized for AI data centers.
In April, it appointed Justin Hotard, formerly head of Intel’s Data Center and AI Group, as its Chief Executive Officer, underscoring its AI ambitions.
The company also announced a partnership with Super Micro Computer in September to build integrated data-center solutions for AI computing.
Hotard’s leadership marks a new era for Nokia, which is now positioning itself as the only Western alternative to China’s Huawei Technologies Co., offering a full suite of communications infrastructure, including 5G radios, fiber optics, and core networking systems.
Nvidia expands its global AI footprint
The investment in Nokia adds to Nvidia’s broader global expansion in AI-related ventures.
In recent months, the company has embarked on a spending spree—pledging up to $100 billion to OpenAI and providing funding to firms such as Wayve and Oxa in autonomous vehicles, Revolut in fintech, and PolyAI in conversational AI.
Nvidia has also announced plans to build a €1 billion data center in Germany in partnership with Deutsche Telekom AG, as part of its effort to strengthen Europe’s AI infrastructure.
The Nokia investment comes as European policymakers and tech leaders seek to build a competitive AI ecosystem capable of keeping pace with the United States and China.
Nvidia CEO Jensen Huang has been vocal in urging Europe to accelerate infrastructure development and support companies aiming to harness AI while maintaining control over their data within the region.
For Nvidia, the Nokia deal represents both a strategic foothold in Europe’s networking industry and an opportunity to integrate AI deeper into next-generation communications infrastructure.
For Nokia, it provides a powerful endorsement of its AI transformation strategy and a boost of confidence from one of the technology industry’s most influential players.
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