Nokia has pledged a $4 billion investment to support the research and development of AI technologies in the U.S. as the firm attempts to profit off the ongoing AI super cycle by introducing AI technology into its operations.
Finland’s Nokia has announced an investment of $4 billion towards AI research, development, and production in the United States. The investment is expected to help accelerate innovations in “AI-optimized connectivity at scale.”
Nokia is committing billions to AI research
In its public statement announcing the investment, Nokia stressed that its aim is to boost the U.S. capacity in security, productivity, and prosperity.
Nokia made its investment in collaboration with the administration of U.S. President Donald Trump, which has so far been encouraging the growth and development of trusted, “homegrown” infrastructure for critical technologies.
Nokia revealed recently that it reorganized its business to create a standalone AI division, officially separating its traditional telecom business from its AI-infrastructure operations.
The reorganization was made possible by a $1 billion investment from Nvidia, which gave Nvidia a 2.9% ownership of Nokia. As part of the deal, the two companies will co-develop AI-native radio access network (RAN) technology and fast-track Nokia’s progression into 5G-Advanced and future 6G systems.
The partnership will make use of Nvidia’s ARC-Pro (Aerial RAN Computer Pro) accelerated platform, which integrates connectivity, computing, and sensing. Nokia plans to integrate this platform into its RAN products, therefore enabling its operators to run AI workloads directly in the network, rather than routing everything through data centers.
This updated system is called edge AI, and it is useful for self-driving cars, robots, smart factories, and other tools that need quick responses. Running AI directly on network equipment also helps improve automation and reduce delays.
AI super cycle
Nokia CEO, Justin Hotard, expressed his confidence in the AI industry, stating that it’s entering a long-term “super cycle,” meaning demand for AI technology will keep growing for many years.
Hotard reportedly thinks of the AI wave as a “secular growth trend” and believes that industries like robotics and augmented reality are still at an early stage, so the need for AI-ready networks will continue rising.
Nokia reported better-than-expected financial results this year due to the strong demand for optical networking and cloud infrastructure, which are both essential for AI systems. Nokia said that AI and cloud customers now account for a meaningful share of its revenue.
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