Nvidia to invest 1$ bn in Nokia for expanding AI-powered strategic partnerships

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  Nvidia to invest 1$ bn in Nokia for expanding AI-powered strategic partnerships

On October 28, 2025, Nvidia announced a business collaboration with Nokia to expand its strategic partnership for AI-powered platforms.

American technology company Nvidia will invest $1 billion in Nokia as part of a new agreement to collaborate on new artificial intelligence projects. Advertisement

Following the news, Nokia’s shares soared 22% in trading, while Nvidia\“s shares rose 1%.

Under the deal, American chipmaker Nvidia will take an equity stake in Nokia and plans to supply the telecom company with AI-powered computers for wireless networks.

As part of the transaction, Nvidia will purchase 166.4 million Nokia shares for $6.01 each, giving the AI chip maker a 2.9% stake.

Moreover, the cellular company Nokia announced that both tech companies will collaborate on artificial intelligence networking solutions and explore opportunities to include Nokia\“s data center communications products in Nvidia\“s future AI infrastructure plans.

Nokia is best known for its early cell phones but has primarily been a supplier of 5G cellular equipment to telecom providers in recent years.

The renowned company that sells mobile network parts has been expanding into data centers, a business growing amid the AI boom that\“s driving demand for computing capacity.

Nvidia chips will be used to accelerate Nokia’s software for 5G and 6G networks, and the chipmaker will explore ways to use Nokia’s data center technology in its own AI infrastructure.

In this confident deal, Nokia and Nvidia agreed to work together on AI networking solutions and to explore opportunities to incorporate Nokia’s data center, switching, and optical technologies.

The telecommunication company Nokia also informed that it “will use the proceeds to accelerate its strategic plans to advance trusted connectivity for the AI super-cycle and other general corporate purposes, including investments in AI and cloud market initiatives within its Network Infrastructure business.”