Key Takeaways
1. Nvidia plans to invest $1 billion in Nokia, acquiring a 2.9% ownership stake to enhance AI networking technologies, including AI-RAN and 6G development.
2. Nokia will issue approximately 166 million new shares to Nvidia, using the funds for AI connectivity and general business needs.
3. The partnership will focus on joint development of AI networking solutions, integrating Nokia’s tech into Nvidia’s future AI infrastructure designs.
4. T-Mobile U.S. will manage and test AI-RAN technologies in collaboration with Nokia and Nvidia, aiming for efficient network performance enhancements.
5. This collaboration positions Nokia as a key player in AI-native networks and prepares both companies for advancements in the telecom industry and 6G technology.
U.S. chip maker Nvidia has revealed plans to put $1 billion into Nokia, giving it a 2.9 percent ownership in the Finnish telecom giant. The deal, valued at $6.01 per share, represents a strategic investment aimed at accelerating the development of AI networking technologies, including AI-RAN (Radio Access Network) and 6G tech.
Share Issuance and Future Goals
As part of this agreement, Nokia will issue 166,389,351 new shares to Nvidia, with a standard closing consideration. The funds raised will be used to enhance trusted connectivity in the AI supercycle as well as for general business needs. The partnership goes beyond just financial investment; Nokia aims to improve its 5G and 6G RAN software to leverage Nvidia’s advanced AI architecture, paving the way for smarter and more flexible networks. Additionally, the collaboration will extend to networking solutions for data centers, where Nokia seeks to expand its presence in AI and cloud infrastructure markets.
Joint Development of AI Solutions
Both companies shared in a joint statement that they will work together on AI networking solutions and may integrate Nokia’s data center switching and optical tech into future AI infrastructure designs by Nvidia.
In a bid to enhance this partnership, T-Mobile U.S. will play a role in managing and testing the AI-RAN technologies amid ongoing 6G advancements. The planned trials aim to demonstrate efficiency and performance enhancements through AI-driven network optimization, expected to roll out next year. Justin Hotard, Nokia’s President and CEO, highlighted the significance of this partnership by stating:
“The next phase in telecom isn’t merely an upgrade from 5G to 6G—it’s a complete redesign of the network to provide AI-powered connectivity that can process intelligence from the data center all the way to the edge. Our collaboration with Nvidia, along with their investment in Nokia, will hasten AI-RAN innovation to make an AI data center accessible to everyone.”
Industry Transformation and Future Deployments
Hotard further added that Nokia is collaborating with Nvidia, Dell Technologies, and T-Mobile U.S. to launch the first AI-RAN deployment in T-Mobile’s network. “We’re excited to lead this industry transformation alongside Nvidia, Dell Technologies, and T-Mobile U.S. Our initial AI-RAN implementations in T-Mobile’s network will ensure that America maintains its lead in the advanced connectivity required for AI,” he mentioned.
Jensen Huang, the Founder and CEO of Nvidia, remarked that this partnership is crucial for national infrastructure and tech supremacy. “Telecommunications represents an essential national infrastructure—the digital nervous system of our economy and security. Built on Nvidia CUDA and AI, AI-RAN will transform telecommunications—a generational platform shift that will enable the United States to reclaim its global leadership in this vital tech sector,” Huang stated.
“Together with Nokia and the U.S. telecom ecosystem, we’re sparking this revolution, empowering operators to create intelligent, adaptive networks that will define future global connectivity.”
This investment will position Nokia as a significant contender in the race to develop AI-native networks and prepare for 6G, while also giving Nvidia a foothold in the telecom industry, which is crucial for scaling its AI computing platforms.
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