Key Takeaways
- Nvidia purchases 166 million new shares at a price of $1 billion at Nokia.
- The announcement increased Nokia stock by 22%.
- Firms will collaborate to come up with 6G wireless technology.
- The Nokia 5G and 6G software is optimized on Nvidia chips.
- The collaboration enhances both companies in the telecom infrastructure.
Chipmaker Takes Major Stake in Finnish Telecom Giant
Nvidia investment in Nokia as announced was $1 billion on Tuesday. The chipmaker will acquire more than 166 million newly issued shares. Nokia’s stock price jumped 22% after the news broke.
The Finnish based company will utilize this money in technology development. Nokia used to be a household name in the mobile phone. It provides telecom equipment (5G cellular) to telecom operators in the world today.
Companies Team Up on 6G Networks
This isn’t just about money. Nvidia and Nokia formed a strategic partnership. They’ll work together on developing 6G cellular technology.
Nokia will modify its 5G and 6G software. The goal is to make it compatible with Nvidia’s GPU chips. Both companies expect to benefit from combining their expertise. Nvidia gets access to telecom technology. Nokia gains advanced computing power for its networks.
The announcement came before Nvidia CEO Jensen Huang’s speech in Washington, D.C. He was scheduled to address policymakers at the company’s developer conference.
LKS 20251029 (FILES) The logo of Finnish technology company Nokia is pictured at the MWC (Mobile World Congress), the world’s biggest mobile fair, on March 4, 2025 in Barcelona. US chip giant Nvidia will take a 2.9 percent stake in Finnish telecoms equipment maker Nokia for $1 billion, Nokia said on October 28, 2025, sending its share price soaring almost 20 percent. The investment is in addition to a strategic partnership between the two companies to develop Nokia’s fifth and sixth generation (5G and 6G) of mobile telephony using Nvidia chips. LEHTIKUVA / AFP, AFP / LEHTIKUVA / JOSEP LAGO
Part of Bigger Investment Push
Huang has been busy making deals lately. Nvidia put $5 billion into Intel earlier this year. The company also invested $100 billion in OpenAI.
Other investments include $500 million for Wayve, a self-driving car startup. Nvidia also committed $667 million to Nscale, a U.K. cloud provider.
These partnerships show Nvidia’s strategy. The company is positioning itself across different tech sectors. This includes cloud computing, autonomous vehicles, and now telecommunications. The Nokia deal gives Nvidia a foothold in wireless communications as 6G development begins.
