NVIDIA is spending one billion dollars to acquire a minority stake in the Finnish telecommunications firm Nokia. The two companies announced they are forming a broad alliance to advance upcoming wireless technologies, specifically 6G networks and the infrastructure that supports artificial intelligence.
This investment will give NVIDIA a 2.9 percent share in Nokia. To facilitate this, Nokia will issue more than 166 million new shares to NVIDIA, with the transaction set to be finalized this November.
Nokia plans to use the new capital to fast-track its existing strategy. The company aims to enhance network connectivity for the expanding AI market and reinforce its standing in cloud and AI-focused infrastructure. Some of the funds are also earmarked for its Network Infrastructure division, a core part of its business.
The relationship extends beyond a simple financial investment into a technical collaboration. Together, NVIDIA and Nokia will jointly research and develop future 6G standards, work on making software more efficient, and build new networking solutions powered by artificial intelligence. They will also explore how to better integrate data centers. Nokia indicated that its technology could potentially be used in NVIDIAs future AI projects, though specific plans are still being determined.