In a major strategic collaboration, Nvidia is set to invest US $1 billion in Finnish telecom giant Nokia, securing a 2.9% equity stake in the company. The partnership marks a significant step toward integrating artificial intelligence into next-generation 5G and 6G networks, as well as advanced data-centre infrastructure.

This investment positions Nvidia to play a deeper role in the global telecommunications ecosystem, leveraging its AI expertise to enhance Nokia’s network automation, analytics, and cloud-native infrastructure capabilities. The alliance will also explore joint innovations in AI-driven network optimization, edge computing, and digital twin technologies — key areas for accelerating the rollout of high-performance and energy-efficient connectivity solutions worldwide.

Nokia, which has been working to expand its software and network infrastructure portfolio, said the partnership with Nvidia aligns with its long-term vision of transforming telecommunications through intelligent automation. The collaboration will allow both companies to combine Nokia’s telecom experience with Nvidia’s leadership in AI computing and chip design to create scalable AI platforms for network operators.

Industry experts view this move as a signal of deepening convergence between the telecom and AI sectors, particularly as networks evolve to support AI-intensive workloads. With this deal, Nvidia continues to diversify beyond GPUs and data centres, entering a critical domain where AI’s potential to transform communication infrastructure is just beginning to unfold.

The investment also provides Nokia with strategic capital and technological support to strengthen its competitive position against major rivals like Ericsson and Huawei. Analysts believe this partnership could set a new industry standard for how AI is embedded into global communications networks, paving the way for faster, smarter, and more resilient connectivity.