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.

Nvidia has revealed a $1 billion investment into Nokia as it looks to take a key role in furthering the development of AI-ready networks. The investment will aim to cover a wide range of projects, including 5G-Advanced and 6G networks built to cope with the massive demands brought by AI workloads.

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.

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.

Unlike rival Ericsson, the $36 bln Finnish group sells networking kit to giant data centres. That means it’s exposed to the artificial intelligence boom. While its core telecoms business is unlikely to show much growth,