Nokia announced on Tuesday that Nvidia has agreed to purchase $1 billion in new shares, marking a significant equity investment in the Finnish telecom equipment provider. The move sent Nokia’s shares soaring by 18% in early trading. As part of the deal, Nokia will issue over 166 million new shares to Nvidia, with the proceeds intended to support its AI initiatives and other general corporate activities. The investment is part of a broader strategic partnership between the two companies, focused on advancing next-generation 6G technology. Nokia plans to adapt its 5G and future 6G software to run efficiently on Nvidia’s AI chips, while also collaborating on networking solutions tailored for AI workloads. In return, Nvidia has indicated it will consider integrating Nokia’s technology into its future AI infrastructure plans. Nokia, once a global leader in mobile phones, has since transitioned into a key supplier of 5G network equipment for telecom operators worldwide. The partnership with Nvidia underscores the growing convergence between telecommunications infrastructure and artificial intelligence, as companies race to build the underlying networks capable of supporting AI-driven applications. The announcement comes as Nvidia CEO Jensen Huang prepares to deliver a keynote address to policymakers and government leaders in Washington, D.C., ahead of the company’s developer conference. The event is expected to highlight ongoing collaborations, including the new alliance with Nokia, as Nvidia continues to expand its influence across industries. This investment follows a series of recent equity moves by Nvidia, which has been actively building strategic partnerships amid its central role in the AI revolution. In September, the company committed $5 billion to Intel, a former rival, and pledged $100 billion to OpenAI. It has also invested $500 million in self-driving startup Wayve and $667 million in U.K.-based cloud provider Nscale. These moves reflect Nvidia’s strategy of securing alliances across sectors to strengthen its dominance in AI hardware and infrastructure.