NVIDIA has made another external investment. On October 28, 2025, it announced it would invest $1 billion to acquire a stake in Finnish telecommunications equipment giant Nokia. The strategic investment aims to deepen cooperation between the two companies in artificial intelligence (AI) and 5G technologies, helping Nokia accelerate innovation in cloud infrastructure and network solutions.
Industry analysts say the stake purchase is not just a capital injection but part of NVIDIA's strategic push into the telecom sector. (NVIDIA is investing $1 billion (about €920 million) through a directed share issuance, becoming roughly a 2.90% shareholder in Nokia.) Known for its powerful GPU technology and AI computing capabilities, NVIDIA is partnering with Nokia, a leading global 5G equipment supplier that faces opportunities from digital transformation. The collaboration is expected to focus on AI‑driven network optimization, edge computing, and cloud RAN (Cloud Radio Access Network) technologies, which would offer operators more efficient and intelligent solutions.
After the announcement, Nokia's shares quickly rose when European markets opened, with intraday gains exceeding 20% at one point. Data from the Helsinki Stock Exchange show Nokia's stock rebounded from the previous trading day's low to reach a six‑month high. Investors welcomed the partnership, believing it could help Nokia stand out in the fiercely competitive telecom market, particularly against rivals such as Huawei and Ericsson.
NVIDIA CEO Jensen Huang said in a statement, "We believe that by working with Nokia we can inject the power of AI into telecom infrastructure and drive a revolution in next‑generation networks." Nokia CEO Pekka Lundmark responded that the investment will inject new energy into the company and accelerate its R&D in AI and sustainable networking technologies.
Market analysts note the move reflects a wave of infrastructure investments by tech giants. With the spread of 5G and AI, the telecom industry has become an investment hotspot. NVIDIA's previous initiatives include collaborations with Arm and several cloud service providers; the stake in Nokia further expands its ecosystem.
However, the deal has also raised some concerns. Regulators may scrutinize potential antitrust issues, particularly within the EU. The Finnish government and the European Commission have said they will closely monitor the transaction details to ensure compliance with competition rules.
The investment marks a deeper convergence between the tech and telecom sectors and could reshape the future global communications landscape. The specific projects to emerge from the partnership will be closely watched.