Nvidia will buy a stake in Nokia and work with the company to build new AI-ready networks. The plan aims to speed up work on 5G evolution and on the next generation of mobile networks. The move shows how chip makers and network firms are linking up to meet rising demand for AI in the cloud and at the edge.
Deal and stake
Nvidia will acquire new Nokia shares for one billion dollars. The purchase will give Nvidia a minority stake in Nokia. The deal will fund Nokia as it moves to expand software for radio access networks and to scale cloud-ready networking gear. The companies say the work will focus on making networks smarter and more efficient so they can handle AI tasks near users.
The agreement also includes a technology partnership. Nokia will develop data center switching and optical systems that can work with Nvidia compute. The partners said that this work will help tie network hardware to AI compute in a new way. That could speed up the delivery of AI features for phones and for cloud services.
Trials and goals
The plan includes field trials with carriers to test AI-aware radio access networks. These trials will check how AI can help the radio network steer traffic and boost energy efficiency. The work will also test how to run AI models across data centers and the network edge. The aim is to make wireless systems more adaptive and to reduce the time it takes to move data.
Executives said the effort is about building a modern network that is tuned for AI. The teams will focus on software that runs on both network gear and on Nvidia compute. The work may lead to new tools for carriers to run AI on the network and to new products that tie compute and connectivity closer together.
Why this matters
AI models are growing fast and need more data and power. That places new demands on network links and on how data moves from a phone to a data center. By aligning network hardware and AI compute, companies can cut delays and waste. This could help deliver faster responses for AI apps and better battery life for devices that rely on real-time AI.
For Nokia, the new capital will fund product work and research. For Nvidia, the stake strengthens ties to telecom operators and to a key supplier of network gear. For carriers, it opens a path to test and to adopt AI-driven ways of running radio access networks.