Nokia to invest $4b in US to boost AI-driven network innovation

• CEO says company’s network division will prioritise partnership with countries that “value Western technology”.
• US remains without a major homegrown telecom hardware supplier, leaving Nokia, Sweden’s Ericsson, and South Korea’s Samsung as the primary sources of equipment for American carriers.

Finland’s Nokia announced that it will invest $4 billion in the United States over the coming years, with an aggressive focus on research, development, and production to accelerate advancements in artificial intelligence-powered network connectivity.

Of the total investment, the telecommunications equipment giant said $3.5 billion will go toward research and development initiatives, targeting breakthrough AI solutions and next−generation networks.

The remaining $500 million is earmarked for manufacturing and capital expenditures, with planned spending across key sites in Texas, New Jersey, and Pennsylvania.

Nokia, which operates more than a dozen facilities in North America and maintains its Bell Labs research division in New Jersey, rolled out a new corporate strategy on Wednesday highlighting operational streamlining and a ramp-up in AI capabilities.

Tariff pressure

The announcement follows a July profit warning, when Nokia cited tariff pressures and a weakening US dollar for challenging conditions; several non-US telecom firms have since sought to shift production to the United States to hedge against ongoing trade uncertainties.

Chief executive Justin Hotard, who joined Nokia from Intel early this year, said the company’s network division will prioritise partnership with countries that “value Western technology.” US President Donald Trump and Finnish President Alexander Stubb recently discussed Nokia’s North American plans during a White House meeting.

The US remains without a major homegrown telecom hardware supplier, leaving Nokia, Sweden’s Ericsson, and South Korea’s Samsung as the primary sources of equipment for American carriers.

The new initiative positions Nokia at the forefront of AI-driven infrastructure development—just as global competition for network innovation intensifies.