Nvidia invests 1 billion US dollars in Nokia for network AI and 6G upgrade

Nvidia is pushing artificial intelligence (AI) more strongly into network infrastructure. To this end, the chip group has entered into a strategic partnership with Nokia to equip the telecommunications company with AI systems for radio networks. At the same time, Nvidia is investing in Nokia, acquiring 166 million shares worth nearly one billion US dollars. The stock market is enthusiastic. Nokia's share price is up by more than 20 percent, Nvidia's by almost 5 percent.

Nvidia has been offering systems for the so-called AI-RAN (Artificial Intelligence Radio Access Network) for some time, which are intended to improve the efficiency and performance of radio networks through AI. This is intended to promote the transition from the current 5G network to the upcoming 6G. Nokia will incorporate these chips and systems into its product range, while Nvidia intends to use Nokia's data center products, such as switches, for its infrastructure.

AI-RAN especially for 6G networks

“AI-RAN, powered by Nvidia's CUDA and AI, will revolutionize telecommunications,” explains Nvidia founder and CEO Jensen Huang, according to the company statement. “Together with Nokia and the American telecommunications ecosystem, we are driving this revolution, enabling operators to build intelligent, adaptive networks that will shape the next generation of global connectivity.”

“The next leap in telecommunications is not just from 5G to 6G – it's about fundamentally redesigning the network to enable AI-powered connectivity that can process intelligence from the data center to the edge,” adds Nokia CEO Justin Hotard. “Our partnership with Nvidia and their investment in Nokia will accelerate AI-RAN innovation and make AI compute accessible to everyone.”

First tests in 2026, stock market is enthusiastic

Nvidia's AI-RAN systems are essentially AI-capable computers that are intended to communicate wirelessly, process AI tasks, and manage mobile radio traffic simultaneously. As with so-called edge computing, data processing is to be carried out closer to the source rather than in the cloud, to reduce waiting times and latencies. According to Nvidia, this is particularly important for the upcoming 6G network, which is also to be characterized by AI applications. T-Mobile USA will test this technology next year, but Nokia expects mass production and deployment for 2027.

Through the billion-dollar investment, Nvidia acquires 2.9 percent of Nokia's shares, reports Bloomberg. This delights investors. Nokia's stock immediately jumped by almost 23 percent, the biggest gain since 2013. After hours, it rose another 3 percent. Nvidia's stock price reacted more reservedly. This stock gained nearly 5 percent in value yesterday, with the price rising by another approximately 1.5 percent after the market closed.

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