Nokia Shares Soar 21% After Nvidia Buys $1 Billion Stake for AI Network Partnership

Nvidia is dropping a staggering $1 billion to snatch a 2.9% stake in Nokia, supercharging the Finnish telecom giant with cutting-edge AI chips for 5G and 6G networks. The deal sees Nokia issuing 166 million new shares at $6.01 each, instantly sending its Helsinki stock soaring 21%, the biggest single-day jump since 2013. Investors flooded trading floors as the news broke, with volume spiking over 400% in the first hour. Analysts from Goldman Sachs to JPMorgan upgraded Nokia to “strong buy,” citing the deal as a pivotal validation of its AI-driven turnaround strategy after years of struggling to reclaim relevance in a post-smartphone world.

The partnership goes far beyond cash. Nvidia will supply revolutionary programmable computers that blend wireless communication, AI processing, and traffic routing in one powerhouse device. These systems, built on Nvidia’s latest Grace Blackwell superchips, can dynamically allocate resources in real time, predicting network congestion, optimizing signal paths, and running complex AI models directly on base stations. Nokia plans to rewrite its entire network stack using Nvidia’s tech, aiming to slash data lag by processing information right at the user’s edge, essentially putting “an AI data center in everyone’s pocket,” as CEO Justin Hotard boldly claimed. This edge-AI architecture could reduce latency by up to 90% compared to traditional cloud routing, enabling ultra-responsive applications like autonomous drones, real-time AR gaming, and remote surgery over mobile networks.

Nvidia CEO Jensen Huang didn’t hold back, calling the move “pretty genius” and hailing it as a return of American dominance in telecom infrastructure. “It’s been a long time since U.S. technology powered the core of global networks,” he declared at a Washington event, standing beside a live demo of a Nokia base station running Nvidia AI. The duo is already gearing up for real-world tests. T-Mobile US will kick off trials in 2026 across major U.S. cities, with full commercial rollout targeted for 2027. Early benchmarks suggest the hybrid AI-RAN (Radio Access Network) could handle 10x more devices per tower while consuming 40% less power, a game-changer for dense urban 6G deployments expected by 2030.

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Once the king of mobile phones in the ‘90s, Nokia has reinvented itself as a critical player in AI-driven data centers and network gear. This deal cements its comeback, especially after acquiring U.S.-based Infinera for $2.3 billion to bolster its optical networking muscle. That purchase gave Nokia end-to-end control over high-speed fiber links critical for feeding massive AI workloads between data centers and edge nodes. CEO Justin Hotard stressed the partnership isn’t exclusive, leaving the door open for Nvidia to team up with rival Ericsson, ensuring fierce competition in the race to build tomorrow’s intelligent networks. “Healthy rivalry drives innovation,” Hotard told Bloomberg. “We’re not locking anyone out, this is about accelerating the entire industry.”

The move comes amid growing calls in Europe for a homegrown AI ecosystem to rival the U.S. and China. EU officials have repeatedly warned that over-reliance on American or Chinese tech risks strategic vulnerability, especially in critical infrastructure like telecom. While some whisper warnings of a 1990s-style dot-com bubble with Nvidia’s aggressive cross-investments, including $100 billion pledged to OpenAI and stakes in autonomous driving startups Wayve and Oxa, Huang remains unfazed. He frames the Nokia deal as a cornerstone of a new era where AI runs the backbone of global connectivity, pushing Western technology to the forefront of the next wireless revolution.

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