Nvidia invests in Nokia with a €0.86 billion equity deal for a 2.9% stake. The move deepens a strategic partnership to accelerate AI‑RAN and 6G development and sent Nokia’s share price up by about 21% to a near ten‑year high.
AI‑RAN and 6G: the strategic rationale
The partnership centres on AI‑native radio access networks (AI‑RAN) and next‑generation 6G. Nokia will embed Nvidia’s accelerated computing into its mobile network portfolio, while Nvidia plans to integrate Nokia’s data‑centre networking and optical technologies into future AI infrastructure.
The goal is to improve performance and energy efficiency across telecom networks and to enable edge AI inference at scale.
Deal mechanics: directed share issue and governance
Nokia will issue 166,389,351 new shares in a directed share offering to Nvidia at a subscription price aligned to the companies’ agreement. Upon completion, Nvidia will hold 2.9% of Nokia’s equity.
Proceeds will support Nokia’s strategy in AI‑aligned networking, including accelerating 5G‑Advanced and 6G software on Nvidia’s architecture. The investment is subject to customary closing conditions.
Market reaction: shares surge to a decade high
Investors reacted strongly. Nokia’s shares jumped by just over 20% on the day of the announcement, lifting the company to its highest level since 2016. The rally reflects expectations that the tie‑up strengthens Nokia’s position in AI‑enabled networks and expands its footprint in data‑centre switching and Ethernet for AI.
What it means for the Nordics and the EU
The deal reinforces Finland’s role in advanced telecoms and adds momentum to the Nordic technology cluster in mobile networks, cloud and AI. For the EU, a deeper Nokia‑Nvidia collaboration supports ambitions to develop resilient, high‑performance infrastructure for the AI era, with spillovers for spectrum policy, standards and the emerging 6G ecosystem.
What to watch next
Key milestones include regulatory clearances, the registration and listing of the new shares, and early AI‑RAN field trials. Watch for operator partnerships across Europe and North America, the integration of Nvidia’s ARC/Aerial platforms in Nokia’s anyRAN approach, and updates on Nokia’s Network Infrastructure unit as it targets AI and cloud demand.
Nvidia’s €0.86bn investment signals confidence in AI‑driven telecoms and gives Nokia additional capital to scale 6G‑ready networks. If execution matches the ambition, the partnership could reshape how European and global operators build and monetise networks in the AI super‑cycle.
