Nvidia has acquired a $1 billion stake in Nokia, the Finnish telecom equipment maker announced Tuesday, sending Nokia shares up by 22% on Wednesday. The move shows Nvidia’s latest strategic investment as it continues to expand its influence in artificial intelligence and next-generation networking technologies.
Nokia will issue over 166 million new shares as part of the deal. The funds raised will support the company’s development in AI and other general corporate initiatives.
Alongside the investment, Nokia and Nvidia have formed a strategic partnership aimed at building future 6G wireless technology. Nokia plans to adapt its current 5G and 6G software to work with Nvidia’s chips. Both companies also intend to jointly develop AI-ready networking solutions.
Nokia said Nvidia may include its networking technologies in future AI infrastructure projects.
The announcement coincides with Nvidia CEO Jensen Huang’s visit to Washington, D.C., where he is expected to sketch the company’s vision to US lawmakers and industry leaders at Nvidia’s developer conference. Nokia and Nvidia are likely to share more about their collaboration during the event.
Nvidia has made several similar moves recently, taking equity stakes in key tech firms. These include a $5 billion investment in Intel, $100 billion committed to OpenAI, $500 million in autonomous driving startup Wayve, and $667 million in UK-based cloud firm Nscale.