NVIDIA is investing $1 billion to enable Nokia to accelerate development of a 6G platform to support artificial intelligence networks and infrastructure.

Nokia’s shares surged over 20% this week after Nvidia stock revealed a $1 billion investment forming a new alliance to develop AI-driven networking and 6G infrastructure.

Shares drop 5% after 40% rally on Nvidia's $1B investment. Analysts warn valuation already prices in uncertain partnership upside.

NVIDIA and Nokia team to accelerate the development and deployment of next-gen 6G connectivity, adding AI native mobile networks and infrastructure.

As part of the deal, Nvidia plans to make a $1 billion investment in Nokia in exchange for a 2.9% stake in the Finnish networking pioneer. To facilitate the transaction, Nokia will issue 166,389,351 new shares, which Nvidia will purchase for $6.01 per share.

Nokia secured another major win as Zayo enlisted the Nordic vendor to support upgrades of its IP network architecture. The now Nvidia-backed firm secured the rights to support Zayo’s upgrade efforts as the fiber provider continues to build out its already sizable network.

Nokia CEO Justin Hotard says AI is a "super cycle," where the "long-term prospects are massive."

NVIDIA CEO Jensen Huang’s 90-minute keynote was a quiet statement of American power – kinda. But he had some surprises up his leather sleeve.