Nvidia has announced that it will invest around $1 billion in Nokia. The investment will be made through a direct equity purchase, giving the American AI and semiconductor giant an ownership stake of around 3% in the Finnish telecommunications company. As per the deal, Nokia will issue around 166 million new shares to Nvidia at a price of about $6.01 per share. Both companies said the partnership will bring together Nvidia’s strength in AI computing and Nokia’s expertise in network technology to create faster and more efficient systems for data centers and future communication networks.
For Nvidia, the partnership gives it a chance to strengthen its role in the AI infrastructure domain. The company’s acquisition of Mellanox Technologies in 2019 gave it a solid position in high-speed networking, and its later work in data-center connections and switching built on that progress. And now, by teaming up with Nokia, Nvidia can expand its technology into the global telecommunications network, making sure that the systems used to train and run AI models work more efficiently with its chips and software. This move could also help the Jensen Huang-led company expand its dominance in the broader AI ecosystem, from data processing and training to communication and cloud integration.
At the same time, on Nokia’s part, the deal brings not only fresh capital but also a strategic partnership with one of the most influential companies in the global technology industry. The Finnish firm has been transforming in recent years, shifting from a traditional telecom equipment manufacturer to a broader provider of cloud networking, optical systems, and advanced 5G and 6G software. The $1 billion investment will support Nokia’s efforts to strengthen research and development in AI-powered network automation and data center connectivity.
“Nokia and NVIDIA’s AI-RAN platform unifies AI and radio access workloads on a software-defined, accelerated infrastructure, boosting performance, efficiency and monetization while enabling a smooth, cost-effective path to 6G,” Nvidia noted.
The timing of this development becomes crucial for both these companies as they are dealing with their own challenges and controversies. For example, Nokia is currently facing significant financial pressure due to weaker demand for telecom equipment and slower growth in its mobile networks division. In the first half of 2025, the company recorded a net profit of just €36 million, down about 88% from the €296 million it achieved during the same period a year earlier. Even in Q2 2025, the firm’s net sales fell by about 1% from the previous year. Meanwhile, Nvidia is also no stranger to challenges. The company is currently facing legal scrutiny in China over alleged antitrust violations. Also in August 2025, Chinese authorities reportedly instructed domestic firms to avoid using Nvidia’s H20 AI chips.
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