Shares of Nokia Oyj experienced a dramatic surge, climbing almost 21 percent, following an announcement by Nvidia Corporation detailing its intent to acquire approximately 2.9 percent of the Finnish telecommunications giant. This significant investment, valued at USD 1 billion (equivalent to around Rp16.58 trillion based on an exchange rate of Rp16,580 per US dollar), signals a pivotal moment for both technology leaders.
This substantial capital injection not only represents a significant financial move but also solidifies a strategic partnership between the two technology behemoths. Their collaborative vision centers on the accelerated development of advanced artificial intelligence (AI)-powered networks and the foundational infrastructure for next-generation communication.
According to a report from Reuters on Wednesday, October 29, 2025, Nokia confirmed that Nvidia’s participation will materialize through the issuance of 166,389,351 new shares, priced at USD 6.01 per share. This strategic investment positions Nvidia as one of Nokia’s most significant shareholders, concurrently bolstering the U.S. company’s influence within the global technology supply chain.
However, the collaboration extends far beyond mere capital investment. Both companies are committed to jointly developing cutting-edge AI-powered network solutions and seamlessly integrating Nokia’s robust data center communication technology into Nvidia’s sophisticated AI infrastructure. This synergy promises to accelerate innovation across critical technology fronts.
“This move is an effort to accelerate the development of Nokia’s 5G and 6G network software, which will run on Nvidia’s architecture,” Nokia stated in its official announcement, emphasizing the forward-looking nature of this strategic alignment.
Echoing this ambitious vision, Nvidia CEO Jensen Huang underscored that this groundbreaking partnership is poised to position the United States as a pivotal hub for the future communication technology revolution. His remarks highlight the geopolitical significance of the collaboration in shaping global technological leadership.
“Thank you for helping bring telecommunications technology back to the United States,” Huang declared during a speech in Washington. He further emphasized that the seamless integration between Nvidia’s accelerated computing capabilities and Nokia’s innovative networking solutions represents a crucial stride toward ushering in the global 6G era.
Meanwhile, Justin Hotard, CEO of Nokia, views this collaboration as a critical milestone in his company’s ongoing transformation. Speaking to Reuters, Hotard articulated, “What’s most important is how American technology from Nvidia becomes the foundation of core capabilities now specifically designed for mobile devices,” underscoring the strategic shift towards next-generation mobile infrastructure.
Hotard anticipates that the innovative devices resulting from this collaborative endeavor will begin contributing to Nokia’s revenue stream by 2027, initially focusing on 5G advancements before transitioning into the burgeoning 6G landscape.
Paolo Pescatore, an analyst at PP Foresight, lauded the partnership as “strong support for Nokia’s new capabilities and direction.” He emphasized the pivotal role next-generation networks like 6G will play in delivering novel AI-powered experiences. Following the announcement, Nokia’s shares closed up an impressive 20.86 percent, reaching their highest level since January 2016, reflecting strong investor confidence.
This strategic move unfolds against a backdrop of surging global capital expenditure for data center infrastructure, projected to exceed USD 1.7 trillion by 2030. This massive increase is predominantly fueled by the rapid expansion of AI technology. Nvidia, which currently holds a near-monopoly on data center chip supply, has already forged key partnerships with leading entities such as OpenAI and Microsoft Corporation, further solidifying its market dominance.
Since joining Nokia last April, Hotard, who previously spearheaded Intel’s data center and AI division, has consistently championed a strategy centered on expanding data center business and AI-driven solutions. Reflecting on the collaboration, he stated, “I admire the speed at which Nvidia moves. That’s the pace I also want for Nokia,” indicating a clear ambition to accelerate Nokia’s transformation.
Ultimately, the Nvidia-Nokia partnership transcends a mere business agreement; it symbolizes a profound shift in the trajectory of the global technology industry. The synergy between Nvidia’s unparalleled chip prowess and Nokia’s deep-seated networking expertise heralds a strategic transformation towards an era of intelligent, AI-powered connectivity and 6G. This collaboration undoubtedly marks a pivotal new chapter in the evolving landscape of the global digital economy, redefining the very map of technological influence.
Summary
Nokia Oyj’s shares experienced a significant surge of nearly 21% after Nvidia Corporation announced a strategic investment of USD 1 billion, acquiring approximately 2.9% of the Finnish telecommunications giant. This investment materializes through the issuance of 166,389,351 new shares priced at USD 6.01 each, establishing Nvidia as a significant shareholder in Nokia.
This substantial capital injection solidifies a strategic partnership focused on accelerating the development of advanced AI-powered networks and foundational infrastructure for 5G and 6G communication. Both companies will jointly develop AI-powered network solutions and integrate Nokia’s data center technology into Nvidia’s AI infrastructure, with new devices expected to contribute to Nokia’s revenue by 2027. This collaboration is seen as a pivotal step in Nokia’s transformation and in positioning the U.S. as a hub for future communication technology.