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

ESPOO/SANTA CLARA - Nvidia Corp will invest $1 billion in Nokia Oyj through a private placement of shares as part of a strategic partnership focused on developing AI-powered radio networks and data center networking solutions, Nokia announced today.

The investment will give Nvidia a 2.90% stake in Nokia, with the U.S. chip giant purchasing 166.4 million new Nokia shares at $6.01 per share. The transaction is expected to be completed in November, subject to customary closing conditions.

Under the partnership, Nokia plans to accelerate the development of its 5G and 6G radio network software on Nvidia’s architecture. The Finnish telecommunications equipment maker will also increase investments to strengthen its position in the AI and cloud services market by offering customized networking solutions for data centers.

"The strategic collaboration and investment are expected to bring significant added value to both companies," Nokia said in a press release. The company will use the proceeds to advance its strategic plans for developing advanced and reliable networks in the AI era and for general corporate purposes.

The companies will jointly develop AI-based networking solutions and explore ways to incorporate Nokia’s data center switching and optical technologies into Nvidia’s AI infrastructure and architecture.

Nokia’s board of directors approved the directed share issue, determining that the strategic partnership, including the share issuance, serves the interests of the company and all its shareholders.

After the registration of the new shares, Nokia’s total number of shares will increase to approximately 5.74 billion. The new shares are expected to be admitted to trading on Nasdaq Helsinki, Euronext Paris, and the New York Stock Exchange.

J.P. Morgan served as Nokia’s financial advisor on the transaction, while Skadden, Arps, Slate, Meagher & Flom LLP and Krogerus Attorneys Ltd provided legal counsel.

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