Nokia Corporation has announced that NVIDIA Corporation will make a US$ 1 billion equity investment in the company as part of a broader strategic partnership aimed at advancing AI-driven networking technologies.
The partnership will focus on accelerating the development of Nokia’s 5G and 6G radio access network (RAN) software to run on NVIDIA’s architecture and on expanding Nokia’s presence in AI and cloud data center networking. Both companies will collaborate on AI networking solutions and explore integrating Nokia’s data center switching and optical technologies into NVIDIA’s AI infrastructure.
In a press release, Nokia revealed that its Board of Directors had approved the issuance of 166.4 million new shares to NVIDIA at US$ 6.01 per share. Following the transaction, NVIDIA will hold approximately 2.9 percent of Nokia’s total shares, becoming a significant minority shareholder. These new shares are expected to be registered in November and admitted to trading on Nasdaq Helsinki, Euronext Paris, and the New York Stock Exchange.
Nokia will use the proceeds from the equity issuance to advance strategic initiatives, including building trusted connectivity for the AI supercycle and supporting general corporate purposes. The company emphasized that the share issuance, conducted as a directed placement, has been independently reviewed for fairness and is aligned with long-term shareholder value.
Nokia will have a total of 5.74 billion shares outstanding with the new shares representing roughly 2.9 percent of the company. The transaction underscores growing interest from leading technology players in combining AI and telecommunications infrastructure to meet next-generation connectivity needs.