Nokia Announces $4 Billion US Investment to Lead AI-Driven Network Infrastructure Revolution

Nokia plans $4 billion AI investment in the United States

STOCKHOLM, Nov 21 (Reuters) - Finland's Nokia (NOKIA.HE), opens new tab said on Friday it plans to invest $4 billion in research, development and production in the United States to accelerate innovation in artificial intelligence network connectivity. The telecom equipment maker said it was announcing the investment in collaboration with the administration of U.S. President Donald Trump. Sign up here. "Our expanded investment will help strengthen the nation's capacity to deliver greater security, productivity, and prosperity through AI-optimised connectivity at scale," Nokia said in a statement. Reporting by Anna Ringstrom, editing by Terje Solsvik Our Standards: The Thomson Reuters Trust Principles., opens new tab

Nokia plans $4 billion AI investment in the United States - The Economic Times

Nokia will invest $4 billion into the US to boost AI-driven network technology, the company announced on Friday. The telecom equipment maker said that $3.5 billion of the investment will be allocated to R&D efforts. It added $500 million will be spent on manufacturing and capital expenditures in states including Texas, New Jersey, and Pennsylvania. Finland's Nokia said on Friday it plans to invest $4 billion in the United States, targeting research, development, and production to drive advancements in artificial intelligence-driven network connectivity. The telecom equipment maker said that $3.5 billion of the investment will be allocated to R&D efforts. It added $500 million will be spent on manufacturing and capital expenditures in states including Texas, New Jersey, and Pennsylvania. Nokia, which operates over a dozen sites in North America and owns Bell Labs in New Jersey, introduced a new strategy on Wednesday aimed at streamlining operations with an emphasis on AI. Finnish President Alexander Stubb said earlier in October Nokia was one of the topics discussed with U.S. President Donald Trump at a White House meeting Friday's announcement follows a profit warning in July tied to tariffs and a weakening dollar, as some non-US firms shift production there to mitigate trade risks. The U.S. lacks a major domestic maker of telecom equipment, leaving Nokia, Ericsson and Samsung as the main options. Chief executive Justin Hotard, who joined Nokia from Intel earlier this year, told Reuters on Wednesday that Nokia's focus for networks is on countries that value Western technology.

Nokia Unveils Strategic Overhaul to Lead AI-Driven Network Era and Capture Value From AI Supercycle

Nokia announces USD 4 billion US investment to scale AI-ready R&D and manufacturing. Nokia has unveiled a sweeping strategic overhaul aimed at positioning the company to lead the AI-driven transformation of global networks. Announced at its Capital Markets Day 2025, November 19, the plan includes a new operational model, streamlined business segments, leadership changes, and updated long-term financial targets as the company seeks to capitalize on what it calls the emerging AI supercycle. Nokia said it intends "to position itself to lead in the AI-driven transformation of networks and capture the value of the AI supercycle." Under the revised strategy, Nokia will concentrate on five priorities: accelerating growth in AI and cloud, advancing AI-native mobile connectivity and 6G, expanding co-innovation with customers and partners, directing capital to areas where it can differentiate, and driving sustainable long-term returns. Nokia President and CEO said the company intends to "connect intelligence" in the same transformative way it once connected people. "Nokia changed the world once by connecting people -- and will again by connecting intelligence. As the trusted western provider of secure and advanced connectivity, our technology is powering the AI supercycle. From fixed to mobile infrastructure we are developing technology that accelerates value for our customers. I am proud of the work Team Nokia is doing to focus and lead this critical era in connectivity," said Justin Hotard, President and CEO of Nokia. From January 1, 2026, Nokia will reorganize its operations into two primary segments -- Network Infrastructure and Mobile Infrastructure -- to better align with customer needs and rising demand for AI-ready networks. Network Infrastructure, identified as a key growth engine, will continue under the leadership of David Heard and comprise three business units: Optical Networks, IP Networks and Fixed Networks. "The reorganization recognizes Network Infrastructure as a growth segment, positioned to capitalize on the rapid, global AI and data center build-out while continuing to innovate for its telecommunications customer base," Nokia said in an exchange filing. The new Mobile Infrastructure segment will consolidate Nokia's Core Networks portfolio, Radio Networks portfolio and Technology Standards, formerly Nokia Technologies. CEO Justin Hotard will lead this division on an interim basis, overseeing Core Software, Radio Networks and Technology Standards. "It will be positioned for core and radio network technology and services leadership to lead the industry to AI-native networks and 6G. The new segment brings together a portfolio whose value creation is founded on mobile communication technologies based on 3GPP standards with a strong cash flow position underpinned by IP licensing," the company said. The company also announced several leadership changes effective next year. Raghav Sahgal will assume the role of Chief Customer Officer, while Patrik Hammaren will continue in the Group Leadership Team as President of Technology Standards. Tommi Uitto will step down from the leadership team at year-end, effective December 31. Nokia is also creating a dedicated "Portfolio Businesses" segment for units considered non-core to its future strategy but with potential standalone value. These include Fixed Wireless Access CPE, Site Implementation and Outside Plant, Enterprise Campus Edge, and Microwave Radio. Together, the units generated roughly EUR 0.9 billion in sales and a EUR 0.1 billion operating loss over the past year. Nokia expects to decide on its long-term direction in 2026. The company is also launching "Nokia Defense" as an incubation unit to consolidate research, development, and go-to-market activities in defense-grade solutions for allied markets. "Building on the strong foundation of Nokia Federal Solutions in the US, the company sees further opportunities in the US, Finland, and other allied countries to deliver defense-grade solutions based on Nokia's core technologies in Network and Mobile infrastructure," Nokia said. As part of its updated financial framework, Nokia has set a new long-term target to lift comparable operating profit to between EUR 2.7 billion and EUR 3.2 billion by 2028, up from EUR 2.0 billion over the last 12 months. The company also introduced a series of strategic KPIs, including a 6-8 percent net sales CAGR for Network Infrastructure, a 13-17 percent operating margin target by 2028, and a Mobile Infrastructure gross margin goal of 48-50 percent. Nokia aims to reduce Group Common and Other operating expenses to EUR 150 million by 2028 and deliver free cash flow conversion of 65-75 percent. Nokia will begin reporting under its new structure in the first quarter of 2026 and plans to publish recast financials for 2024 and 2025 early that year to aid investors' transition to the updated framework. On Friday, November 21, 2025, Nokia announced plans to invest USD 4 billion in expanding its US-based research, development, and manufacturing operations, in collaboration with the Trump administration. The multiyear investment is aimed at accelerating innovation across AI-ready mobile, fixed access, IP, optical and data center networking technologies. The planned investment over multiple years is in addition to Nokia's USD 2.3 billion investment in US manufacturing, R&D, and AI connectivity through its acquisition of Infinera. Infinera had previously committed USD 456 million toward two US manufacturing facilities that received CHIPS Act incentives. The company expects to allocate roughly USD 3.5 billion of the new investment to US R&D, underscoring its long-term commitment to advancing next-generation connectivity and AI technologies. The investment will support development across the full spectrum of network technologies -- including mobile, fixed, IP, optical, data center networking, and mission-critical and defense solutions. Nokia emphasized that its US innovation efforts will continue to build on the legacy of Nokia Bell Labs, headquartered in New Jersey, which has produced breakthrough technologies for more than a century. Of the total amount, approximately USD 500 million will be directed toward capital expenditures for manufacturing and R&D infrastructure in states including Texas, New Jersey, and Pennsylvania. The company said these investments will help bolster its portfolio of AI-optimized networking solutions and strengthen innovation in automation, quantum-safe networks, semiconductor manufacturing and testing, packaging, and materials science. "Nokia's USD 4 billion investment is another Trump administration win for America," said Secretary of Commerce Howard Lutnick. "Their investment in manufacturing, packaging, and R&D for optical chips means the most innovative technologies that power AI, data centers, and critical national security applications will be developed and built here in the USA." "Nokia innovation and technologies are foundational to today's critical network infrastructure. Our expanded investment will help strengthen the nation's capacity to deliver greater security, productivity, and prosperity through AI-optimized connectivity at scale, while advancing the newest research and innovation that will shape the future of networking for the years to come," said Nokia President and CEO, Justin Hotard.

Nokia to invest $4 billion in U.S. R&D and manufacturing expansion By Investing.com

Investing.com -- Nokia announced plans to invest $4 billion to expand its U.S. research and development and manufacturing capabilities in collaboration with the Trump administration. The investment, which will be spread over multiple years, comes in addition to Nokia's $2.3 billion investment in U.S. manufacturing, R&D, and AI connectivity through its purchase of Infinera. Infinera had previously announced a $456 million investment for two U.S. manufacturing facilities, which received CHIPS Act incentives. Approximately $3.5 billion of the new investment will be directed toward R&D, focusing on advancing next-generation connectivity and AI technology across all network facets, including mobile, fixed, IP, optical, data center networking technologies, and mission-critical/defense solutions. The remaining $500 million will fund capital expenditures in manufacturing and research facilities across Texas, New Jersey, and Pennsylvania. "Nokia's $4 billion investment is another Trump administration win for America," said Secretary of Commerce Howard Lutnick. "Their investment in manufacturing, packaging, and R&D for optical chips means the most innovative technologies that power AI, data centers, and critical national security applications will be developed and built here in the U.S.A." The investment plan aims to strengthen Nokia's AI-optimized networking solutions and advance R&D in technologies such as automation, quantum-safe networks, semiconductor manufacturing, testing, packaging, and material sciences. Nokia President and CEO Justin Hotard stated that the expanded investment will "help strengthen the nation's capacity to deliver greater security, productivity, and prosperity through AI-optimized connectivity at scale." The company plans to continue creating groundbreaking technologies in the U.S., building on the legacy of its Nokia Bell Labs headquartered in New Jersey, which has pioneered innovations from the transistor to advancements in digital communications and AI over the past century. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Nokia plans to expand U.S. investment by $4 billion in R&D and manufacturing for AI-ready network connectivity

Nokia in collaboration with the Trump administration, announced plans to expand its U.S. R&D and manufacturing capabilities, investing $4 billion to accelerate innovation in AI-ready mobile, fixed access, IP, optical, and data center networking technologies. The planned investment over multiple years is in addition to Nokia?s $2.3 billion investment in U.S. manufacturing, R&D, and AI connectivity through its purchase of Infinera. Additionally, Infinera had previously announced a $456 million investment for two U.S. manufacturing facilities, which received CHIPS Act incentives. Nokia expects to invest around $3.5 billion in U.S. R&D, reflecting the company?s strong commitment to advancing the next generation of connectivity and AI technology across all facets of the network, including mobile, fixed, IP, optical, data center networking technologies, and mission-critical/defense solutions. Nokia is committed to continuing the creation of groundbreaking technologies in the U.S., following in the footsteps of its award-winning Nokia Bell Labs headquartered in New Jersey. For over a century, the scientists and engineers at Nokia Bell Labs have pioneered technological innovations from the invention of the transistor to advancements in digital communications and now AI. About $500 million in U.S. capital expenditures will be invested in manufacturing and research and development in U.S. states that include Texas, New Jersey, and Pennsylvania. The U.S. investment plan will strengthen Nokia?s comprehensive suite of AI-optimized networking solutions, as well as its industry-leading R&D in advanced networking technologies, including automation, quantum-safe networks, semiconductor manufacturing, testing, and packaging, and state-of-the-art material sciences.

Nokia Pledges $4 Billion U.S. Investment in Trump Administration Partnership

Nokia is investing an additional $4 billion in U.S.-based manufacturing and research and development in partnership with the Trump administration, as the telecommunications company looks to optimize its network infrastructure for artificial intelligence. The company said Friday it plans to commit $3.5 billion to domestic research and development with a focus on AI-ready mobile, fixed access, IP, optical and data-center networking technologies centered at Nokia Bell Labs in New Jersey. Another $500 million will go toward manufacturing and R&D across New Jersey, Texas and Pennsylvania. "Nokia's $4 billion investment is another Trump administration win for America," Commerce Secretary Howard Lutnick said. "Their investment in manufacturing, packaging and R&D for optical chips means the most innovative technologies that power AI, data centers and critical national security applications will be developed and built here in the U.S.A." Nokia CEO Justin Hotard said the investment would bolster network infrastructure amid a flurry of investment in AI. "Our expanded investment will help strengthen the nation's capacity to deliver greater security, productivity and prosperity through AI-optimized connectivity at scale, while advancing the newest research and innovation that will shape the future of networking for the years to come," Hotard said. The multi-year commitment builds on Nokia's previous $2.3 billion investment in domestic manufacturing and research through its purchase of Infinera. Write to Elias Schisgall at [email protected]