Yahoo Financeยท2025-10-28 15:44Group 1: Investment and Partnership - Nvidia will invest $1 billion for a 2.9% stake in Nokia, focusing on AI and data centers [1] - The partnership aims to develop AI networking solutions and integrate Nokia's data center communications products into Nvidia's future AI infrastructure [1][2] - This investment makes Nvidia the second-largest shareholder in Nokia [5] Group 2: Market Impact and Future Projections - Capital expenditure on data center infrastructure is projected to exceed $1.7 trillion by 2030, driven by AI expansion [2] - Nokia's shares rose by 20.86% following the announcement, reaching levels not seen since January 2016 [4] - New equipment from the partnership is expected to start generating revenue from 2027, initially with 5G and later with 6G [3] Group 3: Strategic Focus and Leadership - Nokia's new CEO, Justin Hotard, is prioritizing the expansion of its data center business and has accelerated discussions with Nvidia [4][5] - The collaboration is seen as a strong endorsement of Nokia's capabilities in next-generation networks, particularly in enabling AI-powered experiences [4] - Both Nokia and Ericsson are benefiting from increased AI usage in their connectivity equipment for data centers [6]