Nvidia invests $1 billion in Nokia – strategic AI partnership launched

Nokia just announced some major news that could reshape its future direction. The Finnish tech giant has entered into a strategic partnership with Nvidia, and as part of that deal, Nvidia will invest $1 billion (around €860 million) in Nokia through a directed share issuance.

The investment means Nvidia will become a 2.9% shareholder in Nokia, buying 166 million new shares at $6.01 (€5.16) per share. This isn’t just about money – it’s about combining strengths in AI, cloud networking, and the future of mobile infrastructure.

What’s behind the deal
Nokia plans to use the fresh capital to accelerate its strategic goals, especially around:

• Advancing trusted connectivity for the upcoming AI supercycle
• Speeding up development of 5G and 6G RAN software optimized for Nvidia’s AI architecture
• Expanding Nokia’s presence in the AI and cloud data center networking market

This new partnership aims to merge Nokia’s network infrastructure know-how (especially in switching and optical technologies) with Nvidia’s AI computing platforms. In simple terms, it could make future mobile networks and data centers smarter, faster, and more efficient.

For Nokia, this is a strong signal of market confidence. Nvidia doesn’t just invest randomly. It often chooses partners that can advance AI adoption globally, and Nokia’s deep experience in networking makes it a valuable ally. Just remember all the deals Nvidia signed recently, Mercedes-Benz in autonomous driving, Dell, HP, and Lenovo in data centers, Amazon, Microsoft, and Google in cloud AI, and Mellanox in high-speed networking (which it later acquired).

Interestingly, Nvidia’s expansion is partly supported by U.S. government incentives for semiconductor and AI infrastructure development, which means some of that government-backed funding is now indirectly flowing into Nokia. That could help Nokia stay competitive in a field increasingly dominated by U.S. and Asian players.

What this means for the future
This move could offer Nokia a boost in R&D and help it position itself as a leader in AI-driven networks (hopefully not a short time boost). Also, it could bring new life to its 5G and future 6G business, increase its visibility and relevance in the booming data center and cloud infrastructure markets. Also, if executed well, this could be Nokia’s most important strategic partnership in a decade – potentially even more transformative than its previous tie-ups in the telecom equipment space.

Quick facts
📈 Investment size: $1.0 billion (€0.86 billion)
💰 Price per share: $6.01 (€5.16)
🧩 Nvidia’s ownership after deal: ~2.9%
🧠 Focus: AI-RAN, data center networking, and cloud technologies
🕤 Conference call: 28 October 2025, 9:30 PM Helsinki time
Watch webcast here

Well…

This partnership could mark a turning point for Nokia, moving it beyond the traditional telecom vendor role into a key AI networking player. Nvidia’s backing not only brings capital but also credibility in the fast-growing AI space. If Nokia can truly blend its RAN expertise with Nvidia’s AI hardware and software ecosystem, we might soon see AI-optimized 6G networks and smart cloud systems with Nokia technology at their core. But, this isn’t the first time Nvidia invested in Nokia, athough the involvment of Nvidia is different this time.

It also puts the recent stock movement into perspective. Nokia shares have been rising for days, and now we know why. Markets clearly sensed something big coming.

And while we’ve seen a U.S. tech giant try to “take” Nokia before, this feels very different. Microsoft tried to own Nokia and failed. We all know the story. Its top-down takeover didn’t mesh with Nokia’s culture or strengths. Nvidia, on the other hand, is entering as a collaborator, taking a smaller stake but a smarter approach. It’s not about control, but about mutual gain and shared innovation. We’ll see how all of this will unwound.

Nokia press release