Post by : Badri Ariffin

In a major global tech move, US chip giant Nvidia is investing $1 billion in Finnish telecom leader Nokia, taking a 2.9% stake in the company. The news sent Nokia’s stock soaring by nearly 20%, reaching €7.53 in Tuesday’s trading session.

The billion-dollar deal isn’t just financial — it marks a deeper partnership between two innovation powerhouses. Nvidia and Nokia will jointly work on next-generation mobile networks, focusing on 5G and 6G technologies, and the use of AI to power faster, more intelligent connectivity.

Nokia confirmed it will issue over 166 million new shares priced at $6.01 each to Nvidia. The partnership also includes plans to integrate Nokia’s data centre switching and optical networking technologies into Nvidia’s future AI infrastructure.

The collaboration positions Nokia to strengthen its role in the booming AI and cloud networking markets. For Nvidia, the deal extends its reach beyond GPUs — the chips that power AI models like ChatGPT — into the global telecom sector, a critical component of future AI-driven ecosystems.

Once a mobile phone pioneer, Nokia has been steadily transforming into a global network solutions provider. Nvidia’s strategic investment adds new energy to that transition, signaling growing confidence in Nokia’s ability to deliver the infrastructure that will support the next wave of AI-powered communications.

The partnership highlights how AI and telecom industries are converging, as companies race to build smarter, faster, and more connected digital networks for the future.

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