Nvidia's $1 Billion Strategic Investment in Nokia: Ushering in a New Era of 6G AI-Native Networks

Abstract

Nvidia Corporation announced on October 28, 2025, that it would acquire a 2.9% equity stake in Nokia Oyj for $1 billion and form a strategic partnership with the Finnish telecommunications equipment manufacturer. Nvidia will subscribe to approximately 166.4 million new Nokia shares at a price of $6.01 per share. Following the announcement, Nokia's share price surged over 20% on the day, marking its largest single-day gain in nearly a decade.

Core Content of the Partnership

This strategic partnership aims to integrate Nvidia's AI technology into Nokia's 5G and 6G network products, with both companies jointly developing commercial-grade AI-RAN (Artificial Intelligence Radio Access Network) products. Nvidia's chips will be used to accelerate Nokia's 5G and 6G network software, while Nvidia will explore using Nokia's data center technology in its AI infrastructure.

Nvidia introduced the Aerial RAN Computer Pro (ARC-Pro), a 6G-ready accelerated computing platform that combines connectivity, computation, and sensing capabilities, enabling telecom operators to transition from 5G-Advanced to 6G through software upgrades.

Market Opportunity and Strategic Significance

According to analytics firm Omdia, the AI-RAN market is projected to cumulatively exceed $200 billion by 2030, representing a significant growth opportunity within the RAN market. Consulting firm McKinsey estimates that capital expenditure on data center infrastructure is expected to surpass $1.7 trillion by 2030, primarily driven by the expansion of AI.

Jensen Huang, Nvidia's CEO, stated at the GTC conference in Washington D.C. that this partnership will help the U.S. become the center of the next-generation 6G revolution. Nokia CEO Justin Hotard mentioned that he had been in discussions with Huang for some time and appreciated Nvidia's pace of development.

T-Mobile's Participation in Pilot Program

Nvidia, Nokia, and T-Mobile U.S. will collaborate on developing AI radio technology for 6G development, with trials planned to commence next year. Hotard anticipates new equipment will begin contributing to revenue from 2027, initially for 5G applications, followed by 6G commercial deployments.

Driven by Mobile AI Traffic Growth

Nearly 50% of ChatGPT's 800 million weekly active users access the website via mobile devices, with monthly mobile app downloads exceeding 40 million. Through AI-RAN systems provided by Nvidia and Nokia, mobile operators can enhance performance and efficiency, and improve network experiences for future generative AI and agent AI applications.

Use of Funds

Nokia stated it would use the proceeds from this equity issuance to accelerate its strategic initiatives, advance trusted connectivity for the AI supercycle, and for other general corporate purposes. Nokia's Board of Directors approved the directed share issue of new shares to Nvidia via a resolution passed at 5:30 PM EEST (Eastern European Summer Time) on October 28, 2025.

Nvidia's Investment Strategy

In recent months, Nvidia has made equity investments in several strategic partners, including a $5 billion commitment to Intel, a $100 billion investment in OpenAI, a $500 million investment in autonomous vehicle startup Wayve, and a $667 million investment in UK cloud service provider Nscale.

Industry Analyst Views

Paolo Pescatore, an analyst at PP Foresight, stated: "This is a strong endorsement of Nokia's capabilities. Next-generation networks, such as 6G, will play a significant role in enabling new AI-driven experiences." Mads Rosendal, a credit research analyst at Danske Bank, noted that while Nvidia chips might be more expensive, the proposed partnership would be mutually beneficial given Nvidia's significant share in the U.S. data center market.

Release Time

The partnership announcement was first released at 3:31 PM ET (Eastern Time) on October 28, 2025, and updated at 9:04 PM ET. Nokia held a press conference and investor call at 3:30 PM ET, 7:30 PM GMT (Greenwich Mean Time), and 9:30 PM EEST (Eastern European Summer Time) to discuss the strategic partnership and investment purpose.