U.S. chip manufacturer Nvidia has announced plans to invest $1 billion in Nokia, a move that will grant it a 2.9 percent stake in the Finnish telecommunications company. The deal, whose value is estimated at 6.01 per share, is a strategic investment that will speed up the creation of AI-related networking technologies, including AI-RAN (Radio Access Network) and 6G technologies.

In the context of the agreement, Nokia will issue 166,389,351 new shares to Nvidia with a customary closing consideration. The company plans to utilize the proceeds to develop trusted connectivity of the AI supercycle and for other general corporate purposes. The cooperation extends way beyond the infusion of capital as Nokia plans to develop its 5G and 6G RAN software to execute on the state-of-the-art AI architecture by Nvidia to open the door to smarter, more adaptable networks. The collaboration is also expanded to data center-related networking solutions, where Nokia is aiming to increase its footprint in the markets of AI and cloud infrastructure.

The two companies announced in a joint statement that they would co-develop AI networking solution and consider incorporating Nokia data center switching and optical technology in the future AI infrastructure architecture of Nvidia design.

To further boost the partnership, T-Mobile U.S. will be involved in managing and testing the AI-RAN technologies within the framework of ongoing 6G innovations. The expected trials aim at proving the efficiency and performance improvement through AI-driven optimization of the network, which is expected to appear in the next year. Justin Hotard, Nokia President and CEO, emphasized the importance of this alliance by stating:

“The next leap in telecom isn’t just from 5G to 6G—it’s a fundamental redesign of the network to deliver AI-powered connectivity, capable of processing intelligence from the data center all the way to the edge. Our partnership with Nvidia, and their investment in Nokia, will accelerate AI-RAN innovation to put an AI data center into everyone’s pocket.”

Hotard also mentioned that Nokia is working with Nvidia, Dell Technologies, and T-Mobile U.S. to release the earliest AI-RAN deployment in the network of T-Mobile. “We’re proud to drive this industry transformation with Nvidia, Dell Technologies, and T-Mobile U.S. Our first AI-RAN deployments in T-Mobile’s network will ensure America leads in the advanced connectivity that AI needs,” he said.

According to Jensen Huang, Founder and CEO, Nvidia, the collaboration is key to national infrastructure and technological leadership. “Telecommunications is a critical national infrastructure—the digital nervous system of our economy and security. Built on Nvidia CUDA and AI, AI-RAN will revolutionize telecommunications—a generational platform shift that empowers the United States to regain global leadership in this vital infrastructure technology,” Huang noted.

“Together with Nokia and America’s telecom ecosystem, we’re igniting this revolution. equipping operators to build intelligent, adaptive networks that will define the next generation of global connectivity.”
 

This acquisition will make Nokia a key player in the competition to achieve AI-native networks and 6G preparedness and provide Nvidia with a presence in the telecom industry, a crucial factor to implement its AI computing platforms on a large scale.  

Antony Muchiri – Tech Writer – 87 articles published on Notebookcheck since 2025

I’ve been obsessed with tech for as long as I can remember, so much so that I’ve become the unofficial “tech support” for my entire family. Whether it’s fixing gadgets, explaining specs, or recommending the best buys, I love breaking down tech for everyday people. That passion led me to writing about tech. When I’m not testing gadgets or writing reviews, you’ll probably find me hiking or doom-scrolling car listings (still hunting for my first ride, wish me luck, lol).