Nvidia's $1 Billion Nokia Investment Fuels 21% Share Surge and 6G AI Partnership

Nvidia has reportedly made a $1 billion equity investment in Nokia, acquiring a 2.9% stake in the Finnish telecom equipment maker, as initially reported by Bloomberg and later confirmed with Nokia's shares surging 21% following the announcement. The deal involves Nokia issuing over 166 million new shares, with all proceeds directed toward AI and corporate projects.

This strategic move includes a partnership to collaborate on 6G development, with Nokia integrating its 5G and 6G software into Nvidia's chips and both companies planning to build new networking systems for AI infrastructure. Nvidia's CEO Jensen Huang and Nokia's CEO Pekka Lundmark are involved, though initial reports were unverified by official channels. The investment aligns with Nvidia's broader strategy, following recent multi-billion dollar investments in companies like Intel and OpenAI.

At Nvidia's developer event in Washington, D.C., Huang highlighted the company's U.S.-based production of Blackwell GPUs in Arizona, citing a request from former President Donald Trump to reshore manufacturing for national security and job creation. Huang projected $500 billion in sales with upcoming Rubin chips, while Nvidia's VP Kari Briski emphasized the company's role in U.S. AI leadership. However, Nvidia faces challenges with export restrictions on China, having paused sales there despite earlier approvals.