Nvidia will invest US$1 billion (A$1.53 billion) for a 2.9% stake in Nokia as part of a strategic partnership targeting AI-native mobile networks and 6G infrastructure, the Finnish telecommunications equipment maker announced Tuesday.
The collaboration positions Nokia's AI-RAN (Radio Access Network) products on Nvidia's platforms, enabling mobile operators to deploy 5G-Advanced and 6G networks.
The RAN market is expected to top a cumulative $200 billion by 2030, according to analyst firm Omdia.
News of the strategic partnership sent Nokia shares surging 20.86% - their highest level since January 2016.
Strategic infrastructure play
The partnership centres on Nvidia's newly introduced Aerial RAN Computer Pro (ARC-Pro), a 6G-ready platform combining connectivity, computing and sensing capabilities.
The platform allows telecommunications providers to transition from 5G-Advanced to 6G through software upgrades.
Nokia will expand its global RAN portfolio by embedding the ARC-Pro platform into new AI-RAN solutions, with Dell Technologies providing PowerEdge servers to power the infrastructure.
“Built on NVIDIA CUDA and AI, AI-RAN will revolutionise telecommunications - a generational platform shift that empowers the United States to regain global leadership in this vital infrastructure technology,” Nvidia CEO Jensen Huang said.
“Together with Nokia, and America’s telecom ecosystem, we’re igniting this revolution, equipping operators to build intelligent, adaptive networks that will define the next generation of global connectivity.”
Key elements:
- Commercial-grade AI-RAN products on Nvidia platforms
- Collaboration on AI networking solutions for data centres
- Exploration of Nokia's optical technologies for future Nvidia AI infrastructure
- Joint development of switching solutions using Nokia's SR Linux software for Nvidia Spectrum-X Ethernet
Capital expenditure on data centre infrastructure is projected to exceed $1.7 trillion by 2030, McKinsey estimates.
AI expansion is the driving force
The partnership marks a significant endorsement of Nokia's capabilities in next-generation networks such as 5G-advanced and 6G.
T-Mobile U.S. will collaborate with Nokia and Nvidia to test AI-RAN technologies as part of its 6G development process, with field trials expected to begin next year, focused on validating performance and efficiency gains.
AI-RAN addresses the explosive growth in mobile AI usage.
Case in point: ChatGPT's 800 million weekly active users generate significant mobile traffic, with roughly half accessing the platform via mobile devices, with monthly app downloads themselves surpassing 40 million.
“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 centre all the way to the edge,” Nokia CEO Justin Hotard said.
“Our partnership with NVIDIA, and their investment in Nokia, will accelerate AI-RAN innovation to put an AI data centre into everyone’s pocket.”
The deal, priced at $6.01 per share, remains subject to customary closing conditions.
