Joy Agwunobi
Nvidia, the world’s largest chipmaker by market value, has agreed to invest $1.0 billion in Nokia, securing a 2.9 percent equity stake as part of a deepening technological partnership aimed at driving the next era of 5G, 6G, and artificial intelligence-powered networking.
The investment marks an expansion of the companies’ existing collaboration, with both firms set to jointly develop advanced radio access network (RAN) capabilities and accelerate Nokia’s shift toward data-center-aligned networking solutions optimized for AI and cloud markets.
Announcing the deal in a statement, Nokia said it will issue 166.4 million new shares to Nvidia at $6.01 per share. Completion of the transaction remains subject to closing conditions. The shares will be delivered to Nvidia as American Depositary Shares and are expected to be listed on Nasdaq Helsinki, Euronext Paris, and the New York Stock Exchange after registration in November.
Nokia explained that proceeds from the equity issuance will be deployed to “advance trusted connectivity for the AI supercycle,” alongside other general corporate priorities. Leadership at the Finnish telecoms group expressed confidence that the partnership and financial commitment from Nvidia will accelerate its strategic roadmap, particularly in software-defined networks for emerging technologies.
According to the statement, Nokia intends to expand development of its 5G and 6G radio software on Nvidia’s AI-centric computing architecture. At the same time, the pair will collaborate to shape and lead growth in the AI-RAN market, while exploring the integration of Nokia’s data center switching and optical networking technologies into Nvidia’s future AI infrastructure designs.
Nokia argued that the investment and partnership deliver clear benefits to both the company and its shareholders. It added that the subscription price for the stake was negotiated after independent legal and financial assessments verified the fairness of the terms.
Details included in the transaction filing show that all dollar amounts were converted using the European Central Bank USD/EUR exchange reference rate of 0.8591 for 27 October 2025, placing the capital contribution at around €0.86 billion.
Following completion of the issuance, Nokia’s total share count will rise to approximately 5.74 billion. The new shares represent nearly 3.0 percent of Nokia’s pre-transaction equity base and 2.90 percent of total shares outstanding after issuance.
By linking investment capital with technical collaboration at the heart of next-generation connectivity, the deal positions both Nvidia and Nokia to play more influential roles in the rapidly evolving AI-driven communications ecosystem.
