Nokia Eyes AI Telecom Growth with Nvidia’s $1 Billion Partnership

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Nokia Eyes AI Telecom Growth with Nvidias $1 Billion Partnership

Nokia‘s partnership with Nvidia centers on a $1 billion investment to integrate AI into telecom networks. Announced in October, it drove a 25% surge in Nokia’s shares, pushing its valuation to around €32 billion amid a strategic shift from mobile phones to advanced networking infrastructure.

• Nokia dominated global mobile phones until the iPhone and Android eroded its market share, leading to the 2014 sale of its devices unit to Microsoft.
• Pivoted to telecom networks, securing contracts with BT, Telefónica, and Deutsche Telekom while acquiring Infinera for $2.3 billion to bolster optical capabilities.
• Nvidia deal highlights Nokias AI focus, with new CEO Justin Hotard eyeing data centers and cloud services amid annual AI spending projected in hundreds of billions.

What is the Nokia Nvidia Partnership？

Nokia Nvidia partnership involves Nvidia‘s $1 billion investment and collaboration to embed AI directly into telecommunications networks. This October announcement propelled Nokia’s shares up 25%, reflecting investor confidence in its repositioning within the booming AI telecom infrastructure sector. The deal positions Nokia to capitalize on massive AI-driven data demands.

How Did Nokias Mobile Phone Business Collapse？

Nokia once commanded the mobile phone market with models like the indestructible 3310, which sold 126 million units and popularized the Snake game. In 2000, it held a 26.4% global share per CCS Insight data, peaking at €286 billion valuation—nearly 4% of Finlands GDP. Jorma Ollila, CEO from 1992 to 2006, credited success to marketing prowess over pure tech focus, fostering deep internal belief in mobiles explosive growth.

The tide turned with Apple‘s 2007 iPhone launch, followed by affordable Android devices. Nokia resisted touchscreen shifts and app ecosystems, lagging in software rebuilds against iOS and Android, as noted by Ben Harwood of New Street Research. A 2011 pivot to Microsoft’s Windows Phone via Lumia devices flopped; Ben Wood of CCS Insight deemed it fatal. Revenue plummeted from €37.7 billion in 2007 to €10.7 billion by 2014, when Nokia offloaded its devices and services to Microsoft for €5.4 billion. Wood recalled Nokias near-40% share in 2008, underscoring the unforeseen collapse.