The telecom giant focuses on research, development, and manufacturing expansion as AI demand reshapes the future of network infrastructure.
New York, 25 November 2025 – Nokia has announced plans to invest 4 billion dollars in the United States, with a strong focus on advancing AI-driven network connectivity. According to reports, the Finnish telecom equipment maker will direct 3.5 billion dollars of this investment toward research and development, while the remaining 500 million dollars will be used for manufacturing and capital projects in states such as Texas, New Jersey, and Pennsylvania. Nokia currently operates multiple facilities across North America and owns Bell Labs in New Jersey, making the United States a key market for expansion. The company says its updated strategy aims to simplify operations and increase its use of artificial intelligence in next-generation network systems.
The timing of this decision follows a recent White House meeting between Finnish President Alexander Stubb and former US President Donald Trump, where Nokia was reportedly discussed. The investment also comes shortly after Nokia issued a profit warning linked to tariffs and a weakening US dollar, signaling why international companies are shifting parts of their production to the US to reduce trade-related risks. With the US lacking a major domestic telecom equipment maker, Nokia remains one of the primary suppliers alongside Ericsson and Samsung.
Nokia’s CEO Justin Hotard, who joined the company earlier this year, says that the company is focused on regions that prioritize Western technology standards. He has compared the current surge in AI investment to the internet boom of the 1990s and believes the shift in artificial intelligence will continue for years. Hotard recently highlighted that Nokia reported 435 million euros (505 million dollars) in adjusted operating profit for the quarter and stated that the industry is “at the front end of an AI supercycle.” While some analysts warn that AI markets may be overheating, Hotard remains confident that long-term demand will grow, especially as major tech companies expand their data center capacity.
Industry analysts, investors, and technology leaders have raised concerns over rising AI valuations, with surveys showing that many fund managers see signs of a potential bubble. Well-known figures such as Jeff Bezos and Sam Altman have also cautioned that rapid enthusiasm around artificial intelligence could expose investors to financial risk. Despite this, Hotard believes that continued infrastructure investment will support AI adoption, noting that companies like OpenAI, Microsoft, and Google are increasing spending to scale cloud and data-processing systems. He says that “incremental growth and investment are driven by data centres,” reinforcing Nokia’s strategy to grow in optical networking and cloud connectivity.
Nokia has also seen stronger market performance, with growth from both major technology companies and smaller European organisations. The company recently exceeded market forecasts due to rising demand for optical and cloud networking hardware. This includes new business from AI-focused data centers following Nokia’s acquisition of US optical networking firm Infinera last year. With AI expansion accelerating worldwide, Nokia sees the United States as a central hub for innovation, infrastructure development, and long-term growth in network technology.
