Nokia shares rocketed 20% on Tuesday after Nvidia announced it’s dropping $1 billion for a stake in the Finnish telecom giant. The deal isn’t just about equity—it’s a full-blown partnership to build the AI-powered networks of tomorrow.
Here’s what’s happening: Nvidia’s buying 166 million Nokia shares at $6.01 each, securing a 2.9% stake. But the real story? These two tech heavyweights are teaming up to develop 5G, 6G, and AI networking infrastructure that could reshape how data moves around the planet.
Why Nvidia Is Betting Big on Nokia
Nvidia isn’t just throwing money around for fun. The chip-maker sees Nokia as a critical piece of its AI empire—specifically, the connectivity layer that makes AI actually work at scale.
Nokia’s evolved way beyond those indestructible flip phones. Today, it’s one of the world’s leading 5G infrastructure providers, selling network gear to telecom operators globally. With this partnership, Nokia will adapt its 5G and 6G software to run on Nvidia’s chips while collaborating on AI networking solutions.
Translation? Nvidia wants to make sure its AI systems have the fastest, smartest networks possible. And Nokia gets to ride the AI wave with one of the most powerful companies in tech.
What Nokia Gets Out of the Deal
That $1 billion isn’t going into a vault. Nokia said it’ll use the cash to “accelerate its strategic plans” in AI-driven connectivity and data centre networking. Think faster development cycles, deeper integration with AI workloads, and a stronger foothold in the booming AI infrastructure market.
The companies will also explore weaving Nokia’s data centre switching and optical networking tech into Nvidia’s AI systems. If that works, Nokia could become a standard supplier for AI data centres worldwide.
Not a bad position to be in when every major company is racing to build AI capacity.
Nvidia’s Expanding Empire
This isn’t Nvidia’s first rodeo. Over the past year, the company has been on an investment spree that makes venture capitalists look shy:
- $5 billion into Intel
- $100 billion into OpenAI
- $500 million into UK self-driving startup Wayve
- $667 million into British cloud provider Nscale
The Nokia deal fits perfectly into this strategy. Nvidia’s not just selling chips anymore—it’s building an end-to-end ecosystem that spans semiconductors, AI software, cloud infrastructure, and now telecom networks.
CEO Jensen Huang is expected to showcase the partnership details at Nvidia’s developer conference in Washington DC this week, where he’ll present to global policymakers and tech leaders.
What This Means for 6G and AI
5G was supposed to be transformative. 6G? That’s where things get wild. We’re talking ultra-low latency, massive IoT connectivity, and networks smart enough to optimise themselves using AI.
Nokia and Nvidia are positioning themselves at the heart of this shift. By developing 6G software on Nvidia’s architecture, they’re essentially building the neural system for the next internet.
For investors, this is a clear signal: the AI boom isn’t just about chatbots and image generators. It’s about the infrastructure—the cables, switches, and networks—that make AI possible at planetary scale.
The Bottom Line
Nokia’s 20% share price surge isn’t hype. It’s the market recognising that this partnership puts Nokia squarely in the “AI supercycle” alongside one of the most valuable companies on Earth.
The new shares are expected to be registered in November and listed on Nasdaq Helsinki, Euronext Paris, and the NYSE. For Nokia, this is validation. For Nvidia, it’s another strategic chess move in its quest to own every layer of the AI stack.
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FAQ
Q1: How much is Nvidia investing in Nokia?
A: Nvidia is investing $1 billion by purchasing over 166 million Nokia shares at $6.01 each, giving it a 2.9% stake in the company.
Q2: What will Nokia and Nvidia work on together?
A: They’ll collaborate on adapting Nokia’s 5G and 6G software to run on Nvidia chips, develop AI networking solutions, and integrate Nokia’s data centre tech into Nvidia’s AI infrastructure.
Q3: Why is Nvidia investing in telecom companies?
A: Nvidia needs robust, intelligent networks to support AI deployment at scale. By partnering with Nokia, it ensures its AI systems have cutting-edge connectivity and infrastructure.
Q4: What other companies has Nvidia invested in recently?
A: Nvidia has committed $5 billion to Intel, $100 billion to OpenAI, $500 million to Wayve, and $667 million to Nscale over the past year.
Q5: When will the new Nokia shares be available?
A: The shares are expected to be registered in November 2025 and listed on Nasdaq Helsinki, Euronext Paris, and the New York Stock Exchange.
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Effective Date: 15th July 2025
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