Nokia Unveils Strategy to Benefit from AI Boom

Nokia unveiled its strategy revamp under new CEO Justin Hotard. It includes a focus on five key areas to drive its AI push, a set of new financial targets, leadership changes, and a simplification of its operating model into two main segments.

The strategy changes will take effect from 1 January 2026. Hotard, who took over the CEO role in April, has repeatedly teased a strategy shake-up and stated that as the trusted Western provider of secure and advanced connectivity. To tap into the AI opportunity, the company will focus on five strategic priorities: accelerate in AI and cloud; lead the next era of mobile connectivity with AI-native networks and 6G; grow by co-innovating with customers and partners; focus capital where Nokia can differentiate; and unlock sustainable returns.

The biggest change will be moving from four primary operating segments into two: Network Infrastructure and Mobile Infrastructure. The first recognizes Network Infrastructure as a growth segment and will consist of three business units: Optical Network, IP Networks, and Fixed Networks. Headed up by David Heard, the unit will look to capitalise on global AI and data center build-out while focusing on its telecoms customer base. The shift comes after it secured a $1 billion AI infrastructure investment from Nvidia last month.

The Mobile Infrastructure segment brings together the vendor’s Core Networks portfolio, Radio Networks offering, and Technology Standards, formerly Nokia Technologies. It will be positioned for core and radio networks technology, with the long-term goal of developing AI-native networks and 6G. Tommi Uitto, president of Mobile Networks, will step down from the group leadership team as a result of the changes, while the current head of Cloud and Network services, Raghav Sahgal, has been named chief customer officer. Patrik Hammaren has been named president of Technology Standards.

In addition, four of its units: Fixed Wireless Access CPE, Microwave Radio, Enterprise Campus Edge, and Site Implementation and Outside Plant, will be moved into a dedicated segment called Portfolio Businesses. The vendor said it is aiming to conclude on a future direction for each unit during 2026. Nokia Defense will be launched as an incubation unit, with the company touting further opportunities for the business in the US, Finland, and allied countries.