Nvidia Invests $1 Billion in Nokia as It Nears a $5 Trillion Valuation

Nvidia is once again rewriting history. On Tuesday, the AI giant came within touching distance of a $5 trillion market valuation — a milestone no other company has ever reached — while also announcing a $1 billion strategic investment in Nokia to help power the next generation of AI-driven wireless networks.

Table of Contents

Nvidia’s Unstoppable Rise

Nvidia’s stock surged nearly 5% to close at $201.03, adding more than $230 billion in market value and bringing its total valuation to $4.89 trillion after briefly hitting $4.94 trillion during the trading session. The rally followed CEO Jensen Huang’s keynote at the company’s GTC conference in Washington, D.C., where he revealed $500 billion in AI chip bookings and plans to build seven new supercomputers for the U.S. Department of Energy.

The company’s stock has already jumped 50% in 2025, solidifying Nvidia’s position as the world’s most valuable public company. Huang credited supportive U.S. policies and outlined collaborations with Oracle to build one of the world’s largest AI systems — featuring 100,000 of Nvidia’s latest Blackwell AI processors.

Nokia Partnership to Build Smarter Networks

The second big announcement came when Huang revealed that Nvidia will invest $1 billion in Nokia, giving it a 2.9% stake in the Finnish telecom leader. Nokia’s shares soared more than 20% after the news, reaching their highest level since 2016.

Under the deal, Nokia will issue around 166 million new shares to Nvidia at $6.01 per share. The collaboration will focus on developing AI-native Radio Access Networks (AI-RAN) for 5G-Advanced and future 6G networks.

By integrating Nvidia’s Aerial RAN Computer Pro platform into its AirScale products, Nokia aims to create networks that can learn, optimize, and adapt in real-time.

Nokia CEO Justin Hotard said, “Our partnership with Nvidia will accelerate AI-RAN innovation to put an AI data center into everyone’s pocket.” Analysts estimate the AI-RAN market could exceed $200 billion by 2030, making this collaboration a major step forward for both companies.

Strategic Vision and What Comes Next

The Nvidia–Nokia partnership goes beyond just money. T-Mobile has joined as a collaborator to help test AI-RAN technologies for future 6G trials, expected to start in 2026. These tests will measure how AI-driven systems can boost performance and efficiency in real-world networks.

Hotard, who previously led Intel’s data center division, has made AI infrastructure a key priority for Nokia since becoming CEO earlier this year. Nokia’s recent profits exceeded expectations, thanks to growth in AI-powered data center sales following its Infinera acquisition.

For Nvidia, the Nokia deal is another piece in its broader AI investment strategy. The company has also committed up to $100 billion to support OpenAI and made similar moves in autonomous vehicles and financial technology.

With its stock soaring and new partnerships forming across industries, Nvidia isn’t just dominating AI — it’s shaping the future of global technology itself.