Nokia (NOKIA) Investor Update summary

Strategic partnership and investment highlights

• Nvidia will invest USD 1 billion for a 2.9% stake at USD 6.01 per share, supporting a strategic partnership to accelerate AI-native network development and lead the AI-RAN and data center networking evolution.

• The collaboration aims to unify AI and radio access workloads on software-defined, accelerated computing infrastructure, targeting performance, efficiency, and energy reduction.

• AI-RAN will first be available for 5G networks, with trials expected in 2026 and commercial production by late 2027.

• T-Mobile US will be an early collaborator for field validation, and Dell Technologies will provide PowerEdge servers for scalable deployment.

• Nokia will develop 5G & 6G RAN software on Nvidia's architecture and expand in AI & Cloud markets, integrating data center switching and optical tech into Nvidia's AI infrastructure.

Technology and product roadmap

• AnyRAN software will become AI-centric, integrating Nvidia's Arc Pro platform into AirScale baseband hardware and Dell servers.

• The solution enables a shift from hardware upgrades to a more software-driven model, leveraging Nvidia's product cycles for continuous improvement.

• AI-RAN builds on virtualization concepts, offering both hardware and off-the-shelf server options for customers.

• The partnership supports a transition to networks that learn, evolve, and improve, paving the way for AI-native 6G.

Financial and capital allocation strategy

• Proceeds from Nvidia's investment will accelerate strategic plans for trusted connectivity, AI, cloud, and general corporate purposes.

• Capital allocation priorities remain: organic investments, selective M&A, stable and growing dividends, and buybacks if excess cash remains.

• No requirement to use proceeds specifically for Nvidia GPUs; investment will follow existing capital discipline.