Nokia commits $4bn to advance AI-driven networks in US

Nokia has disclosed plans to put $4bn successful US research, improvement and manufacturing operations, focusing connected gathering AI-ready connectivity infrastructure crossed mobile, fixed access, IP, optical and information centre networking.

The Finnish company’s concern is portion of a multi-year enlargement and follows its $2.3bn acquisition of US optical semiconductor institution Infinera, which was completed successful February 2025.

Nokia stated that $3.5bn volition beryllium directed towards probe and improvement (R&D) activities. This concern is expected to thrust advances successful web exertion spanning information centres, mission-critical systems, defence solutions, and the integration of AI crossed each web layers.

The superior expenditure includes $500m allocated to manufacturing and R&D successful Texas, New Jersey, and Pennsylvania.

According to Nokia, this backing volition bolster home accumulation capabilities for mobile, fixed access, IP and optical networking equipment, arsenic good arsenic heighten its AI-optimised networking suite.

The scope covers further enactment connected automation, quantum-safe networks, semiconductor accumulation and packaging processes and probe into precocious worldly sciences.

This builds connected anterior investments from some Nokia and Infinera. Before becoming portion of Nokia, Infinera had announced a $456m concern successful 2 US manufacturing facilities backed by national CHIPS Act incentives.

Nokia president and CEO Justin Hotard said: “Nokia innovation and technologies are foundational to today’s captious web infrastructure.

“Our expanded concern volition assistance fortify the nation’s capableness to present greater security, productivity, and prosperity done AI-optimised connectivity astatine scale, portion advancing the newest probe and innovation that volition signifier the aboriginal of networking for the years to come.”

Nokia’s longstanding beingness successful US-based innovation besides continues done Bell Labs successful New Jersey, which has contributed to developments from the transistor to integer communications and astir precocious AI technologies.

The announcement comes alongside firm restructuring and strategy updates outlined astatine the precocious held Capital Markets Day 2025.

The institution is simplifying its operational exemplary into 2 segments, which are Network Infrastructure and Mobile Infrastructure.

It is targeting yearly comparable operating profits betwixt €2.7bn ($3.1bn) and €3.2bn ($3.7bn) by 2028 and pursuing 5 priorities. These see accelerating advancement successful AI and unreality technologies, advancing mobile connectivity including enactment connected 6G, co-innovating with customers and partners, focusing concern wherever it tin differentiate, and seeking sustainable returns.