Mumbai, Nov 22 : Nokia has unveiled a major plan to invest $4 billion in the United States, with a sharp focus on strengthening AI-driven network connectivity. According to a Reuters report, the Finnish telecom equipment maker will direct $3.5 billion towards research and development, while the remaining $500 million will be used for manufacturing and capital expenditure across Texas, New Jersey, and Pennsylvania.
Nokia, which operates multiple sites in North America and owns the iconic Bell Labs in New Jersey, also outlined a new strategy centered on simplifying operations and expanding the use of artificial intelligence across its products and processes.
Diplomatic Push Behind the Investment
The investment announcement comes weeks after Finnish President Alexander Stubb met with US President Donald Trump, during which Nokia was reportedly one of the key topics discussed, Reuters stated. The move also follows Nokia’s profit warning in July, triggered by tariffs and a weaker dollar factors prompting many non-US firms to shift more production to the US to mitigate trade risks.
With the United States lacking a large domestic telecom equipment manufacturer, Nokia, Ericsson, and Samsung remain the primary suppliers for the US market.
AI ‘Supercycle’ Driving Nokia’s Strategy
Nokia CEO Justin Hotard, who joined from Intel earlier this year, told Reuters that the company is prioritising markets that emphasise Western technology. He compared today’s surge in AI investments to the internet boom of the 1990s, acknowledging growing concerns about an AI bubble but noting that the long-term momentum remains strong.
Hotard believes the industry is “at the front end of an AI supercycle.” Even if corrections occur, he said, infrastructure demand will continue to rise as companies like OpenAI, Microsoft, and Google expand their data-centre capacity driving demand for Nokia’s optical and cloud networking technologies.
Market Momentum and Recent Growth
Despite broader economic uncertainty, Nokia has reported improved performance, beating market expectations amid rising demand for optical networking equipment. Growth has come from both major tech companies and smaller organisations across Europe. A key driver has been sales to AI-focused data centres following Nokia’s acquisition of US optical networking firm Infinera last year.
As AI infrastructure expands globally, Nokia’s $4 billion US investment positions the company to strengthen its technological leadership while navigating an increasingly complex geopolitical and trade landscape.