Nvidia has acquired a $1 billion stake in Nokia through a directed share issuance, deepening the alliance between the two companies amid rising global demand for artificial intelligence and advanced networking technologies. On Tuesday, Nokia confirmed that it will issue over 166 million new shares to Nvidia at $6.01 per share, giving the U.S. chipmaker a 2.9% holding in the Finnish telecom equipment provider.
The proceeds from the share issuance are earmarked to drive Nokia’s AI initiatives along with other corporate priorities, according to the company. Under the terms of a wide-ranging strategic partnership, Nokia will develop 5G and 6G Radio Access Network (RAN) software on Nvidia’s AI platform and extend its data center networking solutions in collaboration with the chipmaker.
Nokia intends to adapt its 5G and 6G software to operate on Nvidia hardware, while both firms plan joint efforts in networking technologies designed for AI environments. The Finnish group also stated that Nvidia may look to incorporate Nokia’s technologies into its future AI infrastructure programs, reinforcing the collaborative relationship.
This latest transaction follows a string of major equity investments by Nvidia as it consolidates its role at the core of the AI sector. Recent moves include a $5 billion investment in rival Intel, a $100 billion commitment to OpenAI, $500 million in funding for the self-driving car startup Wayve, and a $667 million outlay into UK-based cloud platform Nscale.
During Nvidia’s GTC conference on Tuesday, CEO Jensen Huang announced that the company’s Blackwell graphics processing units—the fastest in its AI portfolio—are now in mass production in Arizona, signaling a manufacturing shift from Nvidia’s previous operations in Taiwan. Huang noted that the change followed encouragement from U.S. President Donald Trump around nine months ago to bring production back to domestic soil.
Separately, Huang said Tuesday that he expects to unveil new collaborations with South Korean companies during his upcoming visit to South Korea, which will be well received by both President Trump and the South Korean government. Nvidia disclosed earlier that Huang will attend the Asia-Pacific Economic Cooperation CEO Summit in South Korea, where he is scheduled to meet global political leaders and senior executives from top Korean firms.
