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Nvidia just made another billion-dollar move — this time into one of Europe’s oldest tech names. Nokia announced Tuesday that Nvidia will purchase $1 billion in new Nokia shares, marking the latest in a string of equity stakes the AI chip leader has taken in its strategic partners. The news sent Nokia shares surging 18%, signaling investor excitement over what could become a defining alliance for the next era of telecommunications and AI infrastructure. Under the deal, Nokia will issue more than 166 million new shares, with proceeds going toward AI-related projects and other corporate initiatives. But the partnership runs deeper than financing. The two companies plan to work together on developing next-generation 6G cellular technology. Nokia will adapt its 5G and 6G software to run on Nvidia’s chips and collaborate on networking technology optimized for AI systems. “The strategic partnership and investment are expected to create significant value for both companies. Nokia will use the proceeds from the offering to accelerate its strategic plans to develop advanced and reliable networks for the AI era and for other general business purposes. Nokia will accelerate the development of its 5G and 6G radio network software on NVIDIA’s architecture,” Nokia said in a news release. Nvidia Bets $1B on Nokia in Strategic Move to Build AI-Ready 6G Networks Nvidia, in turn, is exploring ways to integrate Nokia’s networking expertise into its own future AI infrastructure plans. For Nokia, this partnership represents a major push to stay relevant in a market where connectivity and computing are becoming inseparable. The Finnish company, once known for its iconic mobile phones, has spent the past decade reinventing itself as a major supplier of 5G equipment to telecom operators worldwide. The announcement arrives just as Nvidia CEO Jensen Huang prepares to address policymakers and government leaders in Washington, D.C., at the company’s developer conference — a timely backdrop for unveiling a deeper collaboration between two giants shaping the next generation of global connectivity. Nvidia has been on a spree of strategic investments, placing bets across the tech ecosystem as AI cements its dominance. In recent months, the company has committed $5 billion to Intel, $100 billion to OpenAI, $500 million to self-driving car startup Wayve, and $667 million to U.K.-based cloud provider Nscale. Each move reflects Nvidia’s ambition to secure key positions across the industries that depend most on its chips. With this latest investment, Nokia becomes part of that expanding network — one where data, connectivity, and intelligence converge. If successful, the partnership could set the stage for how AI infrastructure and global communications evolve in tandem over the next decade.
