October 28， 2025
In a major move to integrate artificial intelligence into telecommunications infrastructure, chipmaking giant Nvidia has confirmed a strategic investment of $1 billion in Finnish network vendor Nokia. The agreement, announced on October 28, 2025, will see Nvidia acquire a 2.9 percent stake in the company by purchasing 166 million shares at a subscription price of $6.01 per share.
The investment is the cornerstone of a broader partnership aimed at pushing AI networking, specifically by incorporating AI technologies into telecom networks and data center infrastructure. Following the announcement, Nokia's share price surged by as much as 26 percent, reaching a five-year high.
As part of the collaboration, Nokia will utilize Nvidia's AI products to upgrade its 5G and future 6G networks. The companies revealed that US carrier T-Mobile will also participate, working with the duo to test AI-RAN (Radio Access Network) technologies as part of the 6G innovation process, with trials expected to commence in 2026.
Nvidia founder and CEO Jensen Huang described the initiative as a revolution for the telecommunications sector. "Built on Nvidia Cuda and AI, AI-RAN will revolutionize telecommunications - a generational platform shift that empowers the United States to regain global leadership in this vital infrastructure technology," Huang stated. "Together with Nokia, and America’s telecom ecosystem, we’re igniting this revolution, equipping operators to build intelligent, adaptive networks that will define the next generation of global connectivity."
For Nokia, the partnership aligns with the strategic direction set by CEO Justin Hotard, who took leadership in April 2025. A former Intel data center executive, Hotard has prioritized AI investments and a greater focus on data center services. "The next leap in telecom isn’t just from 5G to 6G - it’s a fundamental redesign of the network to deliver AI-powered connectivity," Hotard said. "Our partnership with Nvidia, and their investment in Nokia, will accelerate AI-RAN innovation to put an AI data center into everyone’s pocket."
The technical collaboration will involve Nokia accelerating the availability of its 5G and 6G RAN software on the Nvidia Cuda platform. The company also plans to embed Nvidia's ARC-Pro (Aerial RAN Computer Pro)—a 6G-ready accelerated computing platform—at the core of its new AI-RAN solution. Furthermore, Nokia aims to evolve its AirScale baseband technology for the 5G-Advanced and 6G era with new AI-RAN capabilities.
Dell Technologies has also been named as a supporting partner in this initiative. Dell's PowerEdge servers will be used to facilitate Nokia's AI-RAN push, aiming to provide seamless software upgrades for a smooth transition from 5G-Advanced to 6G.
Michael Dell, CEO of Dell Technologies, commented on the strategic value, stating, “The telecommunications industry owns the most valuable real estate for AI — the Edge, where data is created. This AI-RAN collaboration with Nokia and Nvidia makes that potential real."
This investment continues Nvidia's recent trend of major financial commitments, following a September announcement of a planned $100 billion investment in OpenAI and a separate $5 billion commitment to rival chip firm Intel.
SOURCE DCD
