With surging AI demand, Nokia is pouring $4 billion into expanding US manufacturing and R&D as it races to build next-generation, AI-driven networks.
Nokia has announced a $4 billion investment programme to scale up its manufacturing and research operations in the United States. The move is aimed at speeding up the development of AI-ready networking technologies across mobile, fixed access, IP, optical, and data-centre systems.
The company said the investment will also bolster its portfolio of AI-optimised networking products and deepen research in areas such as automation, quantum-safe solutions, semiconductor manufacturing, testing, packaging and material science.
Most of the funds, around $3.5 billion, will be directed towards research and development to advance next-generation connectivity and AI across Nokia’s telecoms infrastructure.
The remaining $500 million will be spent on domestic manufacturing and R&D at sites in Texas, New Jersey and Pennsylvania. Nokia has been steadily expanding its US footprint, including the launch of its first broadband products factory in Wisconsin earlier this year.
The investment aligns with Nokia’s broader strategy to meet soaring global demand for AI-driven networks, outlined during its Capital Markets Day. The plan centres on accelerating growth in AI and cloud technologies, supporting AI-built networks and 6G, and strengthening collaboration with customers and partners. Part of this work is already underway.
In October, Nokia partnered with NVIDIA to integrate the chipmaker’s AI technologies into its radio access network products. The collaboration aims to deliver AI-capable, 5G-Advanced and future 6G networks using Nvidia’s platforms. Nvidia has also committed to investing $1 billion in Nokia.
The company is preparing for a major internal reorganisation to support this strategic shift. From January 2026, Nokia will operate through two core segments: network infrastructure and mobile infrastructure, to streamline innovation and better respond to customer needs.
Several existing units will be placed under a business portfolio for future evaluation, while the defence division will be reshaped as an incubation centre for new products.
Nokia’s latest investment follows its $2.3 billion acquisition of Infinera, completed in February, which added significant US-based manufacturing and semiconductor capabilities.
