Nokia is separating its AI operations into a distinct business unit, following a $1 billion investment from Nvidia. This strategic move aims to sharpen Nokia's focus on AI-driven growth, separate from its traditional telecoms business. The Finnish group is keen to capitalise on emerging opportunities in AI, particularly in enhancing 5G and 6G networks.
The new AI unit will concentrate on developing AI networking solutions, integrating Nokia's data centre communication products with Nvidia's AI infrastructure. This collaboration seeks to harness both companies' strengths, powering future data centres and advancing AI radio technologies. Nokia plans to integrate its SR Linux software with Nvidia's Spectrum-X Ethernet system, combining optical and switching tech with Nvidia's AI data centre designs.
Nokia's CEO expects AI-enabled networking equipment to contribute to revenue by 2027, initially rolling out with 5G networks before integrating into 6G infrastructure. This move aligns with Nokia's strategy to increase its presence in the AI and cloud market, focusing on data centre-aligned networking solutions.
