NVIDIA has announced a $1 billion strategic investment in Nokia, aimed at developing AI-powered 5G, 6G, and data centre network infrastructure. The move represents a significant step in the convergence of artificial intelligence and telecommunications, with both companies seeking to shape the next generation of intelligent, software-defined networks.
The investment will support joint development projects between NVIDIA and Nokia, focused on integrating AI-based automation, advanced signal processing, and real-time analytics into core telecom operations. The partnership also aims to accelerate the creation of energy-efficient, scalable data centres that can manage the growing computational demands of connected devices and networks.
In a statement, NVIDIA confirmed that the funding will be directed toward building a shared AI innovation platform within Nokia’s global R&D ecosystem. This platform will facilitate AI model training, network optimization, and predictive analytics for telecom operators worldwide.
Nokia’s President and CEO, Pekka Lundmark, said the collaboration reflects a shared vision for transforming connectivity infrastructure through intelligence and automation. “By combining Nokia’s deep expertise in networking and NVIDIA’s AI leadership, we are enabling telecom networks to become faster, more secure, and more adaptive to the needs of future industries,” he said.
The companies will jointly work on deploying AI-native architectures that can learn from network data in real time, enabling self-healing and self-optimizing networks. This approach could redefine how carriers and enterprises manage connectivity, moving away from static configurations to dynamic, AI-orchestrated environments.
Jensen Huang, Founder and CEO of NVIDIA, described the partnership as part of a broader effort to “infuse intelligence into every layer of connectivity.” He stated, “AI is transforming every industry, and telecommunications is no exception. By bringing NVIDIA’s computing power to Nokia’s network systems, we can help build the foundation of the AI-driven internet.”
The announcement comes amid growing global competition in telecom innovation. As nations race to deploy 5G infrastructure and prepare for 6G trials, companies like Nokia, Ericsson, and Huawei are investing heavily in AI-based network management and virtualized systems. With this partnership, Nokia aims to gain a competitive edge by leveraging NVIDIA’s GPU computing and AI frameworks, including NVIDIA TensorRT and CUDA, to optimize data throughput and reduce latency in large-scale telecom environments.
According to industry analysts, the collaboration signals a new phase of AI integration in network infrastructure, shifting the focus from hardware-intensive operations to software-defined intelligence. The use of AI in radio access networks (RAN) and core systems can significantly enhance bandwidth utilization, spectrum efficiency, and predictive maintenance—critical components in the evolution toward 6G.
As part of the agreement, Nokia will embed NVIDIA’s AI processors and edge computing systems into its AirScale and Cloud RAN solutions. These technologies will help operators process large volumes of network data at the edge, minimizing delays and supporting emerging applications such as autonomous systems, industrial IoT, and immersive communications.
NVIDIA’s investment will also fund joint AI research labs in Finland, the United States, and India, focusing on developing algorithms that can manage multi-domain networks, cybersecurity, and data traffic optimization. Nokia stated that the partnership will extend to collaborating with leading telecom operators and governments to design AI governance frameworks that ensure responsible and transparent deployment.
Both companies are emphasizing sustainability and energy efficiency as key priorities. By applying AI-based load balancing and resource scheduling, the new systems are expected to cut data centre energy consumption by up to 30 percent. The initiative aligns with Nokia’s long-term commitment to achieving net-zero emissions across its operations by 2040 and NVIDIA’s broader sustainability strategy focused on green computing and energy-optimized infrastructure.
Industry observers see this collaboration as a milestone in the AI-driven transformation of telecom networks. With the rise of generative AI, real-time data analytics, and edge computing, telecom infrastructure is evolving into a dynamic, intelligent backbone capable of supporting massive-scale digital ecosystems.
Experts also suggest that the NVIDIA-Nokia alliance could influence standards for future 6G development, where AI will play a central role in coordinating network behavior and optimizing communication across human, machine, and virtual interfaces. 6G networks are expected to deliver ultra-low latency (below 1 millisecond) and data speeds exceeding 1 Tbps, requiring unprecedented computational intelligence, an area where NVIDIA’s high-performance chips could play a critical role.
The collaboration may also extend to data centre innovations, as NVIDIA’s DGX and GH200 AI supercomputing platforms could become the core of Nokia’s next-generation telecom cloud architecture. This would enable carriers to run AI workloads directly within the network, supporting real-time decision-making and advanced service delivery.
The partnership comes at a time when the global telecom sector faces mounting challenges around data sovereignty, AI regulation, and cybersecurity. To address these, Nokia and NVIDIA plan to introduce AI governance models that adhere to emerging regulatory frameworks such as the EU AI Act, while ensuring transparent data handling and algorithmic accountability.
With this $1 billion investment, NVIDIA deepens its role in the telecommunications sector, building on prior partnerships with companies like Ericsson and Vodafone. For Nokia, it marks one of its largest collaborations in AI and data centre infrastructure, reinforcing its position as a key player in next-generation network intelligence.
As telecom operators worldwide prepare for the transition to 6G by the early 2030s, the NVIDIA-Nokia partnership is likely to influence how AI becomes embedded in every aspect of global connectivity from device-level interactions to planetary-scale data management.