Why Nokia is betting on AI-powered networks

Nokia, the venerable Finnish telecom giant, is making a forceful comeback by pivoting sharply into AI-driven network infrastructure and next-generation 6G technology, underscored by a major new 'agentic AI framework' for its Network Services Platform announced just this week. This strategic reorientation has already sent its stock surging over 140% year-to-date in 2026, redefining its market perception from a legacy equipment maker to a critical player in the global AI supercycle. The aggressive shift is fueled by a $1 billion equity investment from Nvidia in late 2025, cementing a partnership to integrate AI workloads directly into radio access networks through AI-RAN initiatives. Further bolstering its position, Nokia $2.3 billion acquisition of optical networking firm Infinera in February 2025 has positioned it to capture soaring demand from hyperscalers for data center interconnects. With AI and cloud sales up 49% year-on-year in Q1 2026, Nokia is directly challenging rivals like Ericsson, who are also pouring resources into AI for networks and AI-native 6G solutions. The immediate future sees Nokia agentic AI framework, designed to enable trust-based, automated IP network operations, becoming commercially available by year-end. Looking further ahead, Nokia Bell Labs is at the forefront of shaping the AI-native 6G landscape, which is expected to underpin everything from pervasive AI to autonomous machines around 2030. The success of this reinvention will hinge on Nokia ability to consistently deliver on its software-centric vision and navigate the intense competition to become the foundational layer for the world's increasingly intelligent, self-managing digital infrastructure.