Nokia announced on Tuesday that NVIDIA will make a $1 billion equity investment in the company as part of a new strategic partnership aimed at developing AI-powered Radio Access Network (AI-RAN) and data center networking solutions.
The Nokia Board of Directors has approved the issuance of 166.4 million new shares to NVIDIA at a price of $6.01 per share (€5.16). Upon completion of the transaction—subject to customary closing conditions—NVIDIA will hold approximately 2.9% of Nokia’s total shares.
“This strategic partnership and investment are expected to create value for both companies,” Nokia stated in a press release. “Nokia intends to use the proceeds to accelerate its strategic initiatives, advancing trusted connectivity for the AI supercycle and other general corporate purposes.”
As part of the collaboration, Nokia plans to optimize its 5G and 6G RAN software to run on NVIDIA’s architecture and expand its presence in the AI and cloud markets through data-center-aligned networking solutions from its Network Infrastructure business.
The two companies will also jointly develop AI networking solutions and explore integrating Nokia’s data center switching and optical technologies into NVIDIA’s future AI infrastructure platforms.
Nokia noted that the subscription price was determined through negotiations between the two parties following independent legal and financial advice to ensure the fairness of the terms. “Based on Nokia’s assessment, the strategic partnership—including the share issuance—is beneficial to both Nokia and its shareholders,” the company added.
The newly issued shares will be delivered to NVIDIA in the form of American Depositary Shares (ADS) and are expected to be registered with the Finnish Trade Register in November. They will be listed alongside existing Nokia shares on Nasdaq Helsinki, Euronext Paris, and the New York Stock Exchange.
Following registration, Nokia’s total number of shares outstanding will increase to 57.4 billion, with the newly issued shares representing approximately 2.9% of the total.
