Nvidia to Invest $1B in Nokia for AI Networks

Nvidia will invest $1 billion to acquire 166,389,351 newly issued Nokia shares at $6.01 apiece, taking a roughly 2.9% stake as part of a strategic partnership to develop AI networking solutions. The deal contemplates integrating Nokia’s data‑center switching and optical technologies into Nvidia’s AI infrastructure and using Nvidia chips to accelerate Nokia’s 5G/6G network software. Nokia said it will use the proceeds to expand its network‑software and data‑center business and to position itself as a Western alternative to Huawei under CEO Justin Hotard after its Infinera acquisition. The announcement sent Nokia shares up roughly 14%–21% intraday, pushing the stock to levels not seen in nearly a decade. Both companies said the collaboration could speed edge computing and real‑time AI processing and generate significant value across telecom and data‑center markets.