Nvidia is set to invest $1 billion in Nokia, acquiring a 2.9% ownership stake to accelerate advancements in AI-driven networking and next-generation 6G technology. This collaboration aims to embed Nvidia’s cutting-edge AI frameworks into Nokia’s radio access and data center systems, fostering the creation of highly responsive and intelligent network infrastructures. Additionally, T-Mobile will participate in pilot testing of the AI-powered Radio Access Network (AI-RAN) technology, with initial trials slated for next year.
Leading American semiconductor giant Nvidia has unveiled plans to broaden its manufacturing footprint within the United States. Through this strategic partnership, Nokia will issue approximately 166 million new shares, granting Nvidia a 2.9% equity position valued at around $6.01 per share. The capital injection is intended to fuel the development of secure, AI-enhanced connectivity solutions aligned with the emerging AI supercycle, alongside supporting Nokia’s broader corporate initiatives.
Central to this alliance is the integration of Nvidia’s advanced AI architecture into Nokia’s 5G and forthcoming 6G software platforms, enabling the deployment of smarter, more adaptive network environments. Nokia also aims to deepen its footprint in AI and cloud infrastructure sectors by co-developing data center networking solutions with Nvidia.
Both companies have jointly committed to co-innovate AI networking technologies, exploring the potential inclusion of Nokia’s data center switching and optical systems within Nvidia’s future AI infrastructure designs.
Collaborative Testing and Industry Impact
To further strengthen this collaboration, T-Mobile US will oversee the management and testing of AI-RAN technologies as part of ongoing 6G innovation efforts. These trials, expected to commence next year, will evaluate the performance enhancements and efficiency gains achievable through AI-driven network optimization.
Justin Hotard, Nokia’s President and CEO, emphasized the transformative nature of this partnership: “The evolution from 5G to 6G is not merely a generational upgrade but a comprehensive redesign to deliver AI-powered connectivity that seamlessly integrates intelligence from data centers to the network edge. Our collaboration with Nvidia, supported by their investment, will expedite AI-RAN advancements, effectively placing AI-enabled data centers within reach of every user.”
Hotard also highlighted Nokia’s joint efforts with Nvidia, Dell Technologies, and T-Mobile to deploy the earliest AI-RAN implementations within T-Mobile’s network. “We are proud to lead this industry transformation alongside Nvidia and Dell Technologies. Our initial AI-RAN deployments in T-Mobile’s infrastructure will position the United States at the forefront of advanced AI-driven connectivity,” he stated.
Leadership in National Infrastructure and Future Connectivity
Jensen Huang, Founder and CEO of Nvidia, underscored the strategic importance of this collaboration for national infrastructure and technological leadership. “Telecommunications form the backbone of our economy and security, acting as the digital nervous system. Powered by Nvidia CUDA and AI, AI-RAN represents a paradigm shift in telecommunications, enabling the United States to reclaim global leadership in this critical infrastructure domain,” Huang remarked. He added that this partnership with Nokia and the broader American telecom ecosystem is catalyzing a revolution, empowering operators to build intelligent, adaptive networks that will define the future of global connectivity.
This investment positions Nokia as a key contender in the race toward AI-native networks and 6G readiness, while providing Nvidia with a strategic foothold in the telecommunications sector.
