Nvidia to invest $1 billion in Nokia as part of strategic AI partnership

ESPOO/SANTA CLARA - Nvidia Corp. will invest $1 billion in Nokia through a directed share issuance, acquiring a 2.9% stake in the Finnish telecommunications equipment maker, Nokia announced Tuesday.

The investment comes alongside a new strategic partnership aimed at developing AI-powered radio access network (AI-RAN) solutions and advancing data center networking technologies.

Under the agreement, Nvidia will subscribe for 166.4 million new Nokia shares at a price of $6.01 per share, subject to customary closing conditions. The transaction is expected to be completed in November.

Nokia plans to use the proceeds to accelerate its strategic initiatives in trusted connectivity for what it calls the "AI supercycle" and for general corporate purposes. The company specifically intends to speed up development of its 5G and 6G RAN software to run on Nvidia’s architecture.

The partnership will also focus on AI networking solutions, with plans to explore incorporating Nokia’s data center switching and optical technologies into Nvidia’s future AI infrastructure architecture.

"The directed share issuance is an essential part of the strategic partnership with Nvidia," Nokia stated in its press release. The company indicated that the subscription price was determined during negotiations between the two firms.

Following the share issuance, Nokia’s total number of shares will increase to approximately 5.74 billion. The new shares will be delivered to Nvidia in the form of American Depositary Shares.

The companies expect the partnership to create significant value for both organizations as they collaborate on next-generation networking technologies designed for AI applications.

Nokia’s Board of Directors approved the share issuance based on authorization granted by shareholders at the Annual General Meeting held on April 29, 2025.

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