NVIDIA's $1 billion investment in Nokia marks a pivotal moment in the race toward AI-native mobile networks and 6G connectivity. Announced on October 28, 2025, the partnership will accelerate the development of AI-RAN (Radio Access Network) infrastructure, enabling telecom providers to deliver intelligent, adaptive networks that serve both enterprise and consumer needs.
A Strategic Leap Toward AI-Native 6G
Under the agreement, Nokia will issue over 166 million new shares to NVIDIA at $6.01 per share, making the U.S. chipmaker a 2.9% shareholder. The funds will support Nokia's AI initiatives and broader corporate goals, including the rollout of commercial-grade AI-RAN products powered by NVIDIA's architecture. Following the announcement, Nokia shares soared 26% higher, reflecting investor confidence in the strategic partnership and its potential to reshape the future of mobile infrastructure.
This collaboration introduces the NVIDIA Arc Aerial RAN Computer (ARC-Pro)—a 6G-ready platform that combines connectivity, computing, and sensing. Nokia will embed ARC-Pro into its RAN portfolio, allowing operators to transition from 5G-Advanced to 6G through software-defined upgrades.
The partnership also lays the groundwork for distributed edge AI inferencing, enabling telecom providers to process data closer to where it's generated—reducing latency and improving responsiveness for real-time applications.
Why AI-RAN Matters for Everyone
AI-RAN uses artificial intelligence to optimize mobile networks, automating traffic management, reducing latency, and improving energy efficiency. This is critical as mobile AI traffic surges—nearly 50% of ChatGPT's 800 million weekly users access it via mobile, and monthly app downloads exceed 40 million.
For consumers, this means faster, more reliable mobile experiences, especially for generative AI applications, AR/VR devices, and autonomous systems. For businesses, it offers scalable infrastructure to support edge computing and data sovereignty.
T-Mobile, Dell, and the Edge Revolution
T-Mobile U.S. will begin field trials of AI-RAN in 2026, validating performance and efficiency gains. Dell Technologies is contributing its PowerEdge servers, designed for seamless upgrades and high-performance edge processing, to support the rollout.
Michael Dell emphasized that telecom operators now control 'the most valuable real estate for AI—the edge,' where data is created and latency matters. By modernizing infrastructure, operators become distributed AI grid factories, processing intelligence at the source.
We are thrilled to announce that @NVIDIA will invest $1 billion in Nokia to accelerate AI-RAN innovation and lead the transition from 5G to 6G as part of a new strategic partnership. https://t.co/pxGT5DYsA2 #NVIDIAGTC #Nokia pic.twitter.com/XBtsQgNuBw
— Nokia (@nokia) October 28, 2025
Future-Proofing for 6G and Beyond
The AI-RAN platform supports software-defined evolution, allowing new capabilities to be added via updates. Nokia's modular AirScale baseband architecture ensures compatibility with existing deployments, minimizing disruption while maximizing ROI.
The partnership also includes collaboration on AI networking solutions, such as data center switching using Nokia's SR Linux and integration with NVIDIA's Spectrum-X Ethernet platform. Optical technologies may also be incorporated into future infrastructure designs.
A Turning Point for U.S. Telecom Leadership
NVIDIA CEO Jensen Huang called telecommunications 'the digital nervous system of our economy and security,' framing AI-RAN as a generational platform shift. Nokia CEO Justin Hotard added that the partnership aims to 'put an AI data center into everyone's pocket,' redefining connectivity from the data center to the edge.
With a projected $200 billion AI-RAN market by 2030, this alliance positions the U.S. to reclaim leadership in global telecom innovation—one intelligent network at a time.
