Nokia has announced a major strategic collaboration with NVIDIA, alongside a $1 billion (EUR 0.86 billion) equity investment that marks a new chapter in both companies’ ambitions to lead the AI-driven telecom and data center networking markets.
Under the agreement, Nokia’s Board of Directors has approved the issuance of 166,389,351 new shares to NVIDIA at a price of $6.01 (EUR 5.16) per share. Once completed, the transaction will make NVIDIA a 2.9 percent shareholder in Nokia, strengthening the partnership between the Finnish telecom giant and the U.S.-based AI leader.
Strategic Partnership for AI-RAN and Data Center Networking
The new strategic partnership aims to combine Nokia’s expertise in 5G and 6G radio access networks (RAN) with NVIDIA’s leadership in artificial intelligence, GPUs, and data center computing. Both companies plan to develop AI-RAN solutions to power the next generation of telecom networks and enhance data center networking architectures.
Nokia will leverage the proceeds from NVIDIA’s investment to accelerate its initiatives, particularly those aligned with the emerging AI supercycle. The funding will be used to advance Nokia’s connectivity portfolio, support AI-native 5G and 6G RAN software, and expand its Network Infrastructure business to align with data center and cloud environments.
Collaborative Development and Integration
As part of the collaboration, Nokia and NVIDIA will co-develop AI networking solutions and explore integrating Nokia’s data center switching and optical transport technologies into NVIDIA’s future AI infrastructure. The partnership underscores both companies’ commitment to shaping the AI-RAN market and creating a unified foundation for AI-driven telecom transformation.
Nokia’s Strategic Vision
Nokia CEO Justin Hotard has consistently highlighted the company’s push to evolve beyond traditional telecom infrastructure toward AI, cloud, and data center-driven solutions. The NVIDIA partnership reinforces this vision and positions Nokia as a key player in AI-powered networking, bridging the gap between telecommunications and high-performance computing.
Earlier, NVIDIA and Intel announced a collaboration to develop multiple generations of custom data-center and PC products. As part of the deal, NVIDIA will invest $5 billion in Intel at a purchase price of $23.28 per share.
NVIDIA also announced a partnership with Saudi organisations: HUMAIN (a subsidiary of Saudi Arabia’s Public Investment Fund) and the Saudi Data & AI Authority (SDAIA) to build “AI factories” (data-centre scale) in the Kingdom. The project includes deployment of NVIDIA’s GB300/Grace Blackwell GPU systems, Omniverse infrastructure for digital-twins, training programmes for thousands of engineers, etc.
Baburajan Kizhakedath