Nvidia is investing $1 billion in Nokia to accelerate the development of artificial intelligence–driven telecom networks, deepening collaboration between the two companies as they look to shape the future of 5G and 6G infrastructure. The investment gives Nvidia a 2.9% stake in Nokia and forms the basis of a partnership focused on building what the firms describe as “AI-RAN” — networks that use artificial intelligence to optimize radio access operations and deliver faster, more adaptive connectivity.
Under the agreement, Nvidia will purchase approximately 166.4 million newly issued Nokia shares at $6.01 each, pending regulatory approval. The capital infusion will support Nokia’s expansion of AI-based RAN software, cloud and data center offerings, as well as its optical and switching technologies — all critical components for building intelligent, scalable network systems.
At the technical core of the collaboration is Nvidia’s CUDA and AI platform, which will be integrated into Nokia’s telecom infrastructure to bring machine learning and data processing closer to the network edge. The idea is to create systems that can dynamically allocate resources, manage traffic, and handle AI workloads locally — reducing latency and energy consumption while improving performance across large-scale networks.
T-Mobile US has already joined as a partner, with field trials scheduled for 2026 to evaluate how AI-RAN performs in real-world environments. The trials will focus on power efficiency, throughput, and adaptability — key metrics for future 6G standards.
Nokia CEO Justin Hotard described the effort as a structural evolution in network architecture, where intelligence moves from centralized data centers to the very edges of connectivity. Nvidia’s Jensen Huang emphasized that telecommunications serve as the “digital nervous system” of modern economies, positioning AI-RAN as a step toward networks that continuously learn and self-optimize.
The deal also extends to broader industry cooperation, including Dell Technologies, which is expected to play a role in integrating AI-RAN capabilities within data centers and edge computing systems.
If the project delivers on its goals, it could represent one of the most consequential changes in telecommunications since the introduction of 4G — not just increasing speed, but fundamentally redefining how networks operate. With AI embedded at every layer, 6G could evolve from a communication platform into an intelligent, adaptive infrastructure powering industries, cities, and connected devices alike.
