Nokia Divides AI and Telecom Business Into Two Units

Core Insights - Nokia is restructuring its business by separating its artificial intelligence (AI) and telecom operations into distinct units, with a focus on enhancing its network infrastructure division [2][4]. - The company aims to leverage its network infrastructure as a growth segment to capitalize on the global demand for AI and data center development [3][4]. - Nokia is also launching a new defense division to expand its offerings in defense-grade solutions, building on its existing capabilities in the US and allied countries [5]. AI and Telecom Business Segmentation - The new network infrastructure division will encompass AI and data center operations, while telecom network operations will be integrated into the mobile infrastructure unit [2]. - This strategic move is intended to position Nokia as a key player in the rapidly evolving AI supercycle, with projections indicating AI spending could exceed $2.8 trillion by 2029 [4]. Partnership and Investment - Nokia has secured a $1 billion investment from Nvidia, which will facilitate the integration of Nvidia-powered AI radio access network (AI-RAN) products into Nokia's offerings [5][6]. - This partnership aims to enable communication service providers to deploy AI-native 5G-Advanced and 6G networks, addressing a market projected to exceed $200 billion by 2030 [6]. Defense Division - The newly established Nokia Defense division will serve as a central hub for go-to-market strategies and research and development for defense solutions [5]. - The company sees significant opportunities in the defense sector, particularly in the US and Finland, leveraging its core technologies in network and mobile infrastructure [5].