Nvidia now valued at 5 trillion US dollars, invests 1 billion in Nokia
Nvidia has become the first publicly traded company to reach a market capitalization of $5 trillion, achieving this milestone 3.5 months after surpassing the $4 trillion mark. The money has to go somewhere – apparently, $1 billion is to be invested in Nokia.
Nvidia now worth $5 trillion due to strong demand for AI systems
Nvidia has become the first company with a $5 trillion valuation, making it the market leader due to the rapidly increasing demand for AI systems. Nvidia’s shares rose by 14.5 percent last week. The reason for this was the high demand for the company’s GPUs and the possibility that Nvidia could sell its most advanced chips in China.
Currently, the US is prohibiting Nvidia from selling its Blackwell AI chips to China, and China, in turn, has prevented Chinese companies from importing certain chips due to national security concerns. US President Trump announced that he will discuss Nvidia’s “super-duper chip” with Chinese President Xi Jinping on October 30, raising hopes that the situation could change.
AI chips are crucial for developing and training large-scale language AI models, and virtually every major technology company is working on AI products. Apple, for example, is expanding its AI infrastructure to enable Apple Intelligence and future AI features. Apple uses Apple Silicon chips but has reportedly also invested in server technology from Nvidia.
This strong growth has overtaken Apple, Microsoft, and other technology companies, but Apple itself reached a milestone yesterday. Shortly before the release of its financial results on Thursday, Apple briefly surpassed the $4 trillion mark. The share price has fallen slightly since then, but the company is close to reaching this target again.
Apple is producing its own servers with artificial intelligence, and the first units have been shipping since this month. It is unlikely that Apple will compete with Nvidia in the server market, as its servers are designed for internal use.
1 Billion US Dollar Investment in Nokia
Nvidia will also make a $1 billion equity investment in Nokia at a subscription price of $6.01 per share, as the two companies announced. With this investment, which is subject to customary closing conditions, Nokia will issue 166,389,351 new shares to the chipmaker, thereby acquiring a 2.90% stake in the Finnish company.
Nokia stated that it will use the proceeds from the share issue to accelerate its strategic plans to “promote trusted connectivity for the AI supercycle and for other general corporate purposes.” Furthermore, Nokia intends to accelerate the development of its 5G and 6G RAN software for Nvidia’s architecture and invest in expanding its presence in the AI and cloud markets with data center-focused networking solutions.
In addition to this equity investment, the two companies agreed to collaborate on AI networking solutions and explore opportunities to integrate Nokia’s data center switching and optical technologies into Nvidia’s future AI infrastructure architecture.
T-Mobile USA will collaborate with Nvidia and Nokia in the area of RAN technology to advance and test AI RAN technologies as part of the development of the 6G standard. This strengthens T-Mobile’s global leadership in driving wireless innovation. The tests are scheduled to begin next year and will focus on validating the performance and efficiency improvements for customers in real-world use.
“The next big step in telecommunications is not just the transition from 5G to 6G—it’s a fundamental redesign of the network to enable AI-powered connectivity capable of handling intelligence from the data center to the end device. Our partnership with Nvidia and their investment in Nokia will accelerate AI RAN innovation and bring an AI data center to every user’s pocket.”
Justin Hotard, President and CEO of Nokia
“We are proud to be driving this industry transformation together with Nvidia, Dell Technologies, and T-Mobile U.S. Our first “AI-RAN implementations on the T-Mobile network will ensure that America remains at the forefront of the advanced connectivity that AI requires,” Hotard added.
“Telecommunications is a critical national infrastructure—the digital nervous system of our economy and security. Based on Nvidia CUDA and AI, AI-RAN will revolutionize telecommunications—a generational shift that will allow the United States to regain its global leadership in this vital infrastructure technology. Together with Nokia and the American telecommunications ecosystem, we are driving this revolution and equipping network operators with intelligent, adaptive networks that will shape the next generation of global connectivity.”
Jensen Huang, Founder and CEO of Nvidia
