Nvidia has invested $1 billion in Nokia, causing the Finnish telecom company’s shares to jump 22%. This investment strengthens Nvidia’s role in telecommunications and AI.
Nokia will issue over 166 million new shares, using the funds to develop AI projects and other corporate goals. The companies have also formed a partnership to co-develop 6G technology, with Nokia adapting its 5G and 6G software to Nvidia’s processors for improved AI networking.
Once known for its mobile phones, Nokia is now a key supplier of 5G infrastructure globally. This partnership aims to accelerate Nokia’s transition to 6G, leveraging Nvidia’s AI hardware expertise.
The announcement coincides with Nvidia CEO Jensen Huang’s upcoming keynote at the company’s developer conference in Washington, D.C., where the collaboration is expected to be highlighted.
Nvidia has recently increased its strategic investments, including $5 billion in Intel, $100 billion in OpenAI, $500 million in UK autonomous vehicle firm Wayve, and $667 million in British cloud provider Nscale.