Nvidia Invest in Nokia with $1 Billion Stake

US chip-maker NVIDIA will invest $1 billion for a 2.9 percent stake in Finnish telecom network equipment firm Nokia, the two companies announced on October 28, 2025.

Under the agreement, Nokia will issue approximately 166,389,351 new shares to NVIDIA at a subscription price of $6.01 per share.

According to Nokia, the investment is part of a broader collaboration focused on integrating NVIDIA’s accelerated computing and AI capabilities into Nokia’s radio access network (RAN) and data center infrastructure, including work on future 5G-Advanced and 6G systems.

Nokia’s share price surged roughly 21 percent following the announcement, rising to its highest level since January 2016.

Nokia stock price – screenshot from Google Search

NVIDIA CEO Jensen Huang said in an official press release:

“Nokia knows telecommunications like no one knows telecommunications and we really enjoy our partnership with them. A lot of it is just chemistry.”

Nokia CEO Justin Hotard stated:

“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 centre all the way to the edge.”

The strategic move comes as Nokia shifts its emphasis from traditional mobile-network equipment to AI-driven data-center, optical networking, and RAN software services. 

AllBlogThings estimated that the market for AI-enhanced RAN (AI-RAN) could exceed $200 billion by the year 2030.

This Nvidia/Nokia deal also underscores NVIDIA’s broader strategy of extending its influence beyond chip-manufacture into telecom infrastructure and networking ecosystems.