Nvidia invests $1 billion in Nokia in exchange for a 2.9% stake
Nokia has signed a deal with Nvidia, under which the American company invests $1 billion, in return receiving a 2.9% stake in the Finnish telecommunications equipment manufacturer. This move triggered a sharp rise in Nokia shares, which climbed by 20.86%, setting a decade-long record.
The agreement involves close cooperation in artificial intelligence and network solutions for data centers. Nvidia and Nokia will jointly develop AI networking solutions and integrate Nokia’s communication products into Nvidia’s new AI infrastructure. Nvidia CEO Jensen Huang expressed hope that this partnership will position the US at the forefront of 6G technology development.
Justin Hotard, the newly appointed CEO of Nokia, predicts that the new generation of equipment will begin to generate income by 2027, following the commercial deployment of 5G and 6G technologies. Nokia also announced a collaboration with T-Mobile US to develop AI radio technologies for 6G, with testing starting in 2024.
Analyst Paolo Pescatore from PP Foresight praised the initiative, noting that next-generation networks will be key to new AI advancements. Capital expenditure on data processing infrastructure is projected to grow significantly, reaching $1.7 trillion by 2030, largely driven by AI.
| Aspect | Metric |
|---|---|
| Nvidia Investment | $1 billion |
| Stake in Nokia | 2.9% |
| Nokia share increase | 20.86% |
| Projected capital growth | $1.7 trillion by 2030 |
