Nvidia Acquires 2.9% Stake in Nokia to Develop AI-Ready Networks
Nvidia has made a strategic $1 billion equity investment in Nokia, acquiring a 2.9% stake in the Finnish telecom giant. The deal involves issuing 166.4 million new shares at $6.01 per share, with J.P. Morgan advising on the transaction. Shares of both companies rallied post-announcement, with Nokia surging over 25%.
The partnership aims to accelerate the development of AI-powered radio access networks (AI-RAN) and data center solutions. Nokia will leverage the proceeds to advance its 5G and 6G RAN software, optimized for Nvidia's AI architecture. The collaboration also includes integrating Nokia's switching and optical technologies into Nvidia's AI infrastructure.
This MOVE signals growing convergence between AI and telecommunications infrastructure, as industry leaders position themselves for next-generation networks. The new shares will begin trading in November across Nasdaq Helsinki, Euronext Paris, and NYSE.
