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US-based AI chip giant Nvidia has announced a major $1 billion investment in Finnish telecom company Nokia, acquiring a 2.9% stake as part of a broader partnership aimed at advancing next-generation wireless technology, including 6G development and AI infrastructure. This marks another strategic move by Nvidia to deepen its footprint across industries, shaping the global AI ecosystem. Nvidia Buys Into Nokia’s Future Vision Under the agreement, Nokia will issue over 166 million new shares to Nvidia, raising approximately $1 billion. These will be delivered as American Depositary Shares and are expected to be officially registered in November. Nokia said the funds will help it accelerate strategic plans to strengthen connectivity for the AI supercycle, alongside bolstering its position in cloud networking and AI-driven infrastructure. The company also plans to channel part of the proceeds into its Network Infrastructure business, which has become a central pillar of its AI ambitions. A Partnership In 5G, 6G And AI Networking The collaboration between Nvidia and Nokia goes beyond financial investment. The two companies have outlined a strategic partnership that will explore 6G development, software optimisation, AI-powered networking solutions and data centre integration. Nokia mentioned that Nvidia may incorporate some of its technologies into future AI infrastructure projects, though such integration remains under consideration at this stage. Nokia has been undergoing a transformation, shifting its focus from traditional telecom hardware toward AI data centre solutions. This pivot seems to be paying off, with Nokia’s shares soaring 21% after the Nvidia announcement. ALSO READ: Google Reassures Users After Gmail Breach Reports, Denies Data Leak And Urges Users To Stay Secure Earlier this year, the company acquired US-based Infinera Corp. for $2.3 billion, strengthening its AI data centre portfolio. According to Bloomberg, Nokia’s recent performance has even exceeded Wall Street expectations, signalling that the strategy may be working. However, some market analysts have drawn parallels between Nvidia’s growing list of partnerships and the “circular deals” seen during the dot-com era, where companies invested in one another to inflate growth figures. Nvidia’s Expanding AI Investment Network This move adds to Nvidia’s growing list of strategic investments. The company has reportedly pledged up to $100 billion in OpenAI, following an initial $100 million investment in 2024 as part of a massive funding round. Nvidia has also partnered with Intel, once its key rival, to collaborate on AI infrastructure and computing technologies.
