Nvidia Corp. has announced a $1 billion investment in Nokia Oyj as the AI giant continues to expand its ecosystem. Under the deal, Nokia will issue 166,389,351 new shares to Nvidia at $6.01 each, giving the American chipmaker a 2.9% stake in the Finnish telecom equipment company.
The collaboration will see Nvidia’s advanced chips powering Nokia’s software for 5G and future 6G networks, while the AI leader will explore leveraging Nokia’s data-centre technologies to enhance its own AI infrastructure. Nokia, long recognized for its telecom hardware, has been strategically expanding into the data-centre market to meet the surging demand for AI-driven computing. This diversification helped the company surpass Wall Street expectations last quarter.
Earlier this year, Nokia acquired Infinera Corp. for $2.3 billion to strengthen its networking solutions for AI data centres. CEO Justin Hotard has emphasized the company’s ambition to position Nokia as a global alternative to China’s Huawei Technologies in the telecom hardware space.
Nvidia itself has been on an aggressive investment spree, committing $100 billion to OpenAI, funding autonomous-vehicle ventures like Wayve and Oxa, fintech firm Revolut, and AI startups such as PolyAI. It also plans to invest $500 million in a new AI data centre with Deutsche Telekom AG.
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