Nvidia Invests $1 Billion In Nokia To Bring AI To Telecom Networks And Data Centers

The deal gives Nvidia a 2.9% stake in Nokia through the purchase of over 166 million new shares at $6.01 each.

This move is part of Nvidia’s broader strategy to strengthen its lead in the global AI race.

Nokia plans to use the funds to speed up its 5G and 6G software development on Nvidia’s platform and expand its presence in the AI and cloud markets.

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Nokia added: “Nokia and Nvidia have agreed to collaborate on AI networking solutions and explore opportunities to incorporate Nokia’s data centre switching and optical technologies in Nvidia's future AI infrastructure architecture.”

Once famous for its mobile phones, Nokia has reinvented itself as a telecom infrastructure company and a major supplier of 5G equipment to global telecom operators. Nvidia, which has also invested $100bn in OpenAI and $5bn in Intel, saw Nokia’s shares rise 15% after the announcement.

"This is a strong endorsement of Nokia's capabilities," said PP Foresight analyst Paolo Pescatore, adding: "Next-generation networks, such as 6G, ​will play a significant role in enabling new AI-powered experiences."

About NVIDIA

Founded in 1993, NVIDIA (NASDAQ: NVDA) pioneered accelerated computing and revolutionized technology with its 1999 invention of the GPU. This innovation transformed PC gaming, advanced computer graphics, and powered modern AI and the metaverse.