Nvidia is investing $1 billion in Nokia to accelerate AI-RAN innovation and spearhead the transition from 5G to 6G networks. As part of this collaboration, Nvidia will acquire a 2.9% stake in Nokia at a price of $6.01 per share. Nokia's shares have jumped by approximately 17% following the announcement.
The partnership will focus on integrating Nvidia's AI technology with Nokia's telecom infrastructure, enabling communication service providers to launch AI-native 5G-Advanced and 6G networks. Nokia plans to adapt its 5G and 6G RAN software to run on Nvidia's architecture. The collaboration also extends to AI networking solutions, including data centre switching and optical technologies. T-Mobile U.S. and Dell Technologies are also working with Nokia and Nvidia to integrate AI-RAN technologies.
The collaboration aims to improve network performance and efficiency, supporting the increasing demands of AI-powered consumer experiences and enterprise services. The partnership marks the beginning of the AI-native wireless era, with the goal of delivering distributed edge AI inferencing at scale. Nokia will use the investment to increase its presence in the AI and cloud markets.
