Nokia Oyj (HEL:NOKIA) has unveiled what it calls the first commercial AI-native radio access network (AI-RAN) platform, developed in partnership with NVIDIA Corp (NASDAQ:NVDA). The new system introduces a subscription model for software-based capacity upgrades, but the company indicated that commercial revenue from this initiative is not expected until 2027.
Shares of Nokia climbed 2.6% to €10.54 in Helsinki following the announcement, as investors reacted to the company's strategic pivot toward artificial intelligence in its largest business segment. The Mobile Infrastructure unit, which generated €2.495 billion in first-quarter sales—36% more than Network Infrastructure—will be the primary beneficiary of this new platform.
AI-RAN Platform Details
The AI-RAN platform is designed to work with existing 4G and 5G networks, as well as future 6G deployments. Operators have three deployment options: integrating a graphics-processor plug-in into current AirScale basebands, deploying a standalone AI-RAN node, or running the platform on cloud server hardware. Nokia emphasized that the system is compliant with Open RAN standards, allowing customers to gradually adopt the technology without replacing entire networks.
Nokia claims the platform has already demonstrated over 20% improvement in spectral efficiency, enabling more data throughput within the same spectrum. The company aims to achieve a 50% boost by 2027 and more than double by 2028. However, pilot programs are not scheduled to begin until late 2026, with commercial rollout planned for 2027.
Financial Implications and Market Context
While Nokia's AI and cloud customer sales surged 49% in the first quarter, they still represent only 8% of total revenue. The new platform targets the Mobile Infrastructure segment, which contributed more than half of comparable group revenue. Radio Networks remained flat during the quarter, while Mobile Infrastructure sales grew 3% on a constant-currency and portfolio basis, with an operating margin of 8.9%.
Nokia CEO Justin Hotard described AI-RAN as “the biggest innovation in radio in decades,” and Rémy Pascal, an analyst at Omdia, called it “an important step in bringing AI-RAN from industry vision to commercial reality.” Despite the bold statements, the company did not disclose subscription pricing, contract sizes, or revenue targets for the new platform.
Competitive and Industry Pressures
The announcement comes amid broader industry challenges. Swedish rival Telefonaktiebolaget LM Ericsson (STO:ERIC-B) reported an 8% decline in network sales for the second quarter, with shares falling nearly 12%. Ericsson's finance chief, Lars Sandström, noted that rising memory-chip prices are squeezing the sector, stating, “The whole AI build-out is putting quite the pressure on the whole industry, including us.”
Nokia shares remain nearly 30% below their 52-week high of €15, and Ericsson's stock is approximately 23% off its own 52-week peak. These levels suggest that investors are currently discounting AI-related narratives from telecom equipment providers.
Outlook and Key Milestones
Nokia is scheduled to report second-quarter results on July 23. With the AI-RAN platform not generating revenue until 2027, investors will be monitoring near-term performance in optical and mobile orders. The company's partnership with Taiwan Mobile Co Ltd (TPE:3045), announced on Tuesday, provides an early test of its installed-base strategy, though financial terms were not disclosed and the agreement was not described as a subscription to the AI-RAN platform.
Looking ahead, the key catalysts for Nokia's AI story will be year-end pilot programs that deliver named subscription customers and public pricing. Until then, the narrative remains one of technological promise rather than tangible earnings impact.
