Nvidia agreed to purchase 8 percent of Nokia’s outstanding shares through an open market transaction valued at $1 billion, announced on October 28, 2025. The investment gives Nvidia representation on Nokia’s board of directors, with Nvidia CEO Jensen Huang joining as a non-executive member to guide AI strategy. Nokia’s Helsinki-listed shares jumped 22 percent immediately after the news, marking the largest single-day gain since 2020.
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Why the sudden investment in Nokia?
Nvidia aims to integrate its Grace Blackwell GPUs and AI accelerators into Nokia’s telecom networks, enhancing data processing speeds for 5G and edge computing applications. Nokia, which has faced declining market share in mobile base stations, will leverage Nvidia’s expertise to develop AI-powered network management tools and software-defined radio systems. The partnership builds on prior collaborations, including Nokia’s use of Nvidia’s Aerial platform for 5G Open RAN development since 2023. Analysts estimate this could help Nokia regain 5 percent market share in the $50 billion global telecom equipment sector by 2027.
How does Nokia stand in the whole transaction?
Nokia reported €5.2 billion in sales for the third quarter of 2025, down 3 percent year-over-year due to reduced demand for legacy 4G equipment from major carriers. The company has invested €2.3 billion in R&D this year, focusing on 6G research and AI orchestration for private 5G networks used in manufacturing and logistics. This Nvidia deal provides Nokia with capital to expand its cloud RAN portfolio, competing against Ericsson and Huawei in enterprise deployments. Nokia’s CEO Pekka Lundmark stated the investment validates their pivot toward AI-native networks.
The transaction is expected to close by the end of November 2025, pending regulatory approvals from the EU Commission and U.S. Federal Trade Commission. Nokia and Nvidia plan to demonstrate joint AI-5G prototypes at MWC Barcelona in March 2026, showcasing real-time network optimization. The companies will co-develop a unified platform for AI-driven telecom services, with initial deployments targeted for enterprise customers in 2026. Board integration for Huang will begin immediately after closing.
