According to CNBC, Nvidia announced multiple strategic partnerships at its GTC conference in Washington, D.C., including a $1 billion investment in Finnish telecom company Nokia to develop next-generation 6G cellular technology. The company also revealed collaborations with T-Mobile for AI-RAN integration and with Oracle to build the Department of Energy’s largest AI supercomputer. Meanwhile, Eli Lilly CEO David Ricks confirmed the company has already produced “billions of doses” of its oral weight loss pill orforglipron ahead of its expected FDA submission before year-end and launch in 2025. These developments come alongside market movements influenced by potential U.S.-China tariff reductions and anticipation of Federal Reserve rate decisions. The convergence of these announcements highlights significant shifts across technology and healthcare sectors.
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Nvidia’s Telecom Ambitions Beyond AI Chips
Nvidia’s move into telecommunications infrastructure represents a strategic expansion beyond its core AI chip business. The $1 billion investment in Nokia signals Nvidia’s recognition that future AI applications will require robust network capabilities that current 5G infrastructure cannot support. By positioning itself at the foundation of 6G development, Nvidia isn’t just selling chips—it’s building the entire ecosystem that will run on them. This approach mirrors Microsoft’s strategy in the 1990s: control the platform, and you control the applications built on top of it.
The Coming Transformation in Weight Loss Treatment
Eli Lilly’s decision to manufacture “billions of doses” of orforglipron before even submitting for FDA approval demonstrates extraordinary confidence in both the drug’s efficacy and market demand. This preemptive manufacturing addresses the critical supply chain issues that have plagued injectable GLP-1 drugs like Mounjaro and Zepbound. The oral format could dramatically expand access to weight loss treatments, potentially making them as commonplace as cholesterol medications. However, Eli Lilly faces significant regulatory hurdles and must demonstrate that mass production hasn’t compromised quality control. The company’s gamble suggests they’re preparing for a prescription volume that could reshape the entire pharmaceutical manufacturing landscape.
The Infrastructure Challenge for AI’s Next Phase
Nvidia’s telecom partnerships reveal a critical bottleneck in the artificial intelligence revolution: network capacity. As AI applications become more sophisticated and distributed, they’ll require latency and bandwidth that current networks cannot provide. The collaboration with T-Mobile specifically targets AI-RAN (Radio Access Network) technology, which could enable real-time AI processing at the network edge rather than in centralized data centers. This technical challenge represents a massive business opportunity, but also significant execution risk—telecom infrastructure upgrades historically take years and require global coordination among equipment manufacturers, carriers, and standards bodies.
Regulatory and Competitive Risks Ahead
Both companies face substantial headwinds despite their ambitious moves. Nvidia’s global expansion into telecommunications infrastructure will inevitably attract regulatory scrutiny, particularly given the strategic importance of 6G networks to national security. The potential tariff reductions mentioned in the market context could help, but geopolitical tensions around technology sovereignty remain high. Meanwhile, Eli Lilly’s weight loss pill faces not only FDA scrutiny but also intensifying competition from Novo Nordisk and potential new entrants. The oral format, while more convenient, may face questions about bioavailability and efficacy compared to injectables.
Long-term Investment Implications
These announcements signal that both companies are playing long-term strategic games rather than quarterly earnings. Nvidia’s diversification beyond pure AI hardware into network infrastructure suggests management anticipates the next phase of computing will be defined by connectivity as much as processing power. Eli Lilly’s manufacturing bet indicates they view obesity treatment as a decades-long market opportunity rather than a temporary trend. For investors, the key question is whether these capital-intensive expansions will deliver returns before competitors can respond with their own innovations or before regulatory environments shift unfavorably.
