Nvidia has announced a $1 billion equity investment in Finnish telecom giant Nokia, marking a strategic partnership aimed at advancing artificial intelligence (AI) and laying the groundwork for next-generation 6G networks. The deal, confirmed on October 28, 2025, gives Nvidia a 2.9% stake in Nokia through the purchase of over 166 million newly issued shares at $6.01 apiece Tech Digest Yahoo Finance.
The investment signals Nvidia’s expansion beyond AI computing and data centers into the telecommunications sector. Under the agreement, Nokia will adapt its 5G and 6G software to run on Nvidia’s high-performance chips, while both companies collaborate to develop AI-native wireless infrastructure. The partnership is expected to deliver smarter, more efficient networks capable of predicting demand, optimizing bandwidth, and self-correcting in real time Tech Digest CCE Online News.
Nvidia CEO Jensen Huang unveiled the initiative at the company’s GTC conference in Washington, D.C., describing it as a transformative moment for mobile connectivity. “We are now going to build an AI computing system on top of the wireless telecommunications network,” Huang said, likening the effort to the evolution of cloud computing atop the internet The Register.
For Nokia, the deal represents a pivotal shift from its legacy as a mobile handset manufacturer to a global supplier of 5G and emerging 6G infrastructure. The company plans to use the proceeds to fund AI development and expand its presence in the data center market, a sector experiencing rapid growth amid rising demand for computing capacity Mint ET Telecom.
The announcement sent Nokia’s shares soaring by over 26%, reflecting investor confidence in the partnership’s potential to reshape the future of wireless technology Tech Digest Daily Jang.
Industry analysts view the move as a bold step toward AI-powered telecommunications, with implications for autonomous transport, industrial automation, and remote healthcare. The collaboration also positions both firms at the forefront of the race to define global standards for 6G, expected to roll out by the early 2030s.
Sources: Tech Digest Tech Digest; Yahoo Finance Yahoo Finance; Mint LiveMint; CCE Online News CCE Online News; Daily Jang Jang News; The Register The Register; ET Telecom ET Telecom
