Saad Ullah
In a deal that could reshape telecommunications, Nvidia has invested $1 billion in Nokia, acquiring a 2.9% stake as part of a strategic partnership focused on AI-powered network infrastructure. The announcement sent Nokia's shares up 21%, reaching their highest level in a decade and adding €6.7 billion to its market value.
AI Meets Telecom: A Strategic Collaboration
The partnership, first spotted by trader Rohan Paul, positions Nvidia as one of Nokia's largest shareholders while extending the chipmaker's AI dominance into global communications. Nokia will collaborate with Nvidia to integrate artificial intelligence into radio access networks through AI-RAN technology, promising faster, more cost-effective, and energy-efficient mobile networks.
AI-RAN allows networks to analyze traffic in real time, identify bottlenecks, adjust radio frequencies dynamically, and reduce power consumption during off-peak hours. This helps telecom operators cut costs while meeting growing energy efficiency demands as data traffic surges.
The $200 Billion AI-RAN Opportunity
Nvidia projects the AI-RAN market could reach $200 billion by 2030. Nokia will deploy Nvidia's new Blackwell GPUs to train and run AI models managing critical network functions like multi-cell scheduling and spectrum allocation. These capabilities, traditionally hardwired into telecom hardware, can now be optimized through AI for greater flexibility and speed.
Nvidia brings AI acceleration and computing platforms, while Nokia contributes radio access software and global deployment expertise. Together, they're building a foundation that could redefine next-generation mobile connectivity.
Nokia's Transformation and Nvidia's Ambitions
Nokia has reinvented itself from a mobile phone giant into a network technology leader focused on cloud systems, AI, and wireless infrastructure. This partnership positions Nokia at the forefront of the AI-powered 6G race while helping Nvidia expand into telecommunications, a sector increasingly vital for connected devices, smart cities, and industrial automation.
A Turning Point for the Industry
As both companies push toward smarter, greener networks, their alliance highlights a broader shift: the convergence of AI and telecommunications. The Nvidia-Nokia partnership represents one of the most significant cross-industry collaborations in recent years, potentially setting the blueprint for how AI will shape the future of global connectivity.
Saad Ullah
