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

Core Insights - Nokia plans to invest $4 billion in US research, development, and manufacturing, focusing on AI-ready connectivity infrastructure across various networking domains [1] - The investment follows Nokia's $2.3 billion acquisition of Infinera, completed in February 2025 [1] Investment Breakdown - $3.5 billion will be allocated to research and development (R&D) activities, aimed at advancing network technology in data centers, mission-critical systems, defense solutions, and AI integration [2] - $500 million of the capital expenditure is designated for manufacturing and R&D in Texas, New Jersey, and Pennsylvania [2] Production and Technology Enhancement - The funding will enhance domestic production capabilities for mobile, fixed access, IP, and optical networking equipment, as well as improve AI-optimized networking solutions [3] - The investment scope includes automation, quantum-safe networks, semiconductor production, packaging processes, and advanced material sciences research [3] Historical Context - Prior investments from Nokia and Infinera include Infinera's $456 million investment in two US manufacturing facilities, supported by federal CHIPS Act incentives [4] - Nokia's CEO emphasized the importance of Nokia's innovations in critical network infrastructure [4] Strategic Goals - The investment aims to strengthen the US's capacity for AI-optimized connectivity, enhancing security, productivity, and prosperity [5] - Nokia's ongoing innovation efforts are supported by Bell Labs in New Jersey, which has a history of significant technological contributions [5] Corporate Strategy - The announcement coincides with corporate restructuring and strategy updates, simplifying operations into two segments: Network Infrastructure and Mobile Infrastructure [6] - Nokia targets annual comparable operating profits between €2.7 billion ($3.1 billion) and €3.2 billion ($3.7 billion) by 2028, focusing on five strategic priorities [7]