Finland-based telecommunications giant Nokia made a bombshell announcement on the technology agenda. The company announced that chipmaker Nvidia had invested $1 billion for a 2.9 percent stake in Nokia. Immediately following this news, Nokia shares gained 22 percent on the stock market, reaching a 10-year high.

Nokia’s market capitalization is at its peak

According to the details of the agreement, Nokia is issuing more than 166 million new shares at $6.01 per share. The company will use the proceeds from this sale to fund its investments in artificial intelligence and general corporate activities. This investment marks the beginning of a long-term strategic partnership between the two technology giants.

This new partnership focuses on two critical areas: the development of 6G cellular technologies and the creation of AI-enabled network solutions. Nokia explicitly stated that it will adapt its existing 5G and future 6G software to Nvidia’s advanced chips. Furthermore, the two companies will collaborate intensively on AI-based network technologies.

With this partnership, Nokia aims to move beyond its traditional telecom equipment manufacturer and establish a stronger position in the rapidly growing AI-enabled network market. The company also announced that Nvidia will consider using Nokia’s technologies in its own future AI infrastructure plans.

Nvidia, which has recently become a central figure in the AI ​​ecosystem, is further accelerating its strategic investments with this move. Beyond this agreement, the company also invested $5 billion in Intel, $100 billion in OpenAI, $500 million in autonomous driving startup Wayve, and $667 million in UK-based cloud provider Nscale in September.