What Happened ? Who is the favorite child ?
NVIDIA, the AI Giant announced that it will invest $1 Billion in Nokia as a part of strategic partnership. When I was a little kid, Nokia was the only phone we used. That’s the “child” I’m talking about.
Through this Investment, Nvidia is buying 166.4 million shares of Nokia at $6.01 per share, which will give it a 2.9% ownership stake in the company.
When this news was announced, Nokia’s stock jumped by 22% — like a lucky draw jackpot for the company.
What will be the Impact of the deal ?
- Stronger 6G Development– Nokia and Nvidia will work together to make faster and smarter 6G networks using AI.
- Smarter Management– AI will help telecoms predict and fix problems early, saving time and money.
- Will capture New opportunities– This deal will create new business in smart cities, self-driving cars, and IoT markets.
Why Nvidia Is Investing $1 Billion ?
Nvidia doesn’t just want to sell chips, it wants to build and control a full AI ecosystem that includes everything like telecom and cloud. This shows Nvidia’s long-term vision and profit goal.
By buying a 2.9% stake in Nokia, Nvidia can get big benefits. Nokia is growing fast and could lead in 6G technology in the next decade.
Also, this deal helps Nvidia stay ahead of competitors, like AMD, Intel, and Qualcomm, who are already working on AI and 5G. Nvidia’s $1 Billion investment makes sure it stays strong in the AI and network race for the future.
What Nokia and Nvidia said about this Investment officially
“The next leap in telecom isn’t just from 5G to 6G — it’s a fundamental redesign of the network to deliver AI-powered connectivity, capable of processing intelligence from the data center all the way to the edge. Our partnership with NVIDIA … will accelerate AI-RAN innovation.”
— Justin Hotard, President & CEO, Nokia.
“Telecommunications is a critical national infrastructure — the digital nervous system of our economy and security … Together with Nokia … we’re igniting this revolution, equipping operators to build intelligent, adaptive networks that will define the next generation of global connectivity.”
— Jensen Huang, Founder & CEO, Nvidia.
In shot details—–
Nokia’s stock went up a lot after Nvidia announced it will invest $1 billion in the Finnish tech company.
Even Nvidia’s own shares increased.
This deal shows that Nvidia is focusing more on AI and technology networks.
In short, Nvidia’s trust and investment made Nokia’s stock price rise sharply.