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Nokia has struck what analysts describe as a “deal it couldn’t refuse” with NVIDIA: a $1 billion investment for a 2.9 % stake, aimed at accelerating the Finnish telecom-vendor’s transition into AI-driven radio access network (RAN) infrastructure.
Under new CEO Justin Hotard, formerly head of Intel’s data centre and AI divisions, Nokia is intent on re-positioning itself from traditional RAN vendor to a “smart-network” leader. Hotard commented the industry is “at the outset of the AI super-cycle,” signalling Nokia’s belief in embedding AI deep into mobile networks.
NVIDIA’s rationale is equally clear: the RAN segment offers access to thousands of network sites, possible new homes for its GPUs and AI-tooling. With RAN revenues at roughly US $35 billion and shrinking, NVIDIA sees the move as a vehicle to re-apply its data-centre strength in telecom infrastructure.
Nokia’s mobile-networks business has been under pressure, with major contract losses and slowing growth. The influx of capital and the NVIDIA partnership help reposition Nokia’s narrative. For NVIDIA, the investment offers a shortcut into telco infrastructure markets that have so far been largely resistant to GPU-based AI-RAN approaches.
Operator interest in GPU-based AI-RAN is still limited, and many telcos continue to rely on traditional silicon and purpose-built chips. Analysts caution that without a clear-cut commercial rollout, the investment may serve more as positioning than immediate revenue.
The partnership will focus on integrating Nokia’s RAN software with NVIDIA’s architecture and exploring new AI-driven network functions.
