Nokia Lost the Smartphone Market but Doesn't Want to Miss the AI Boom

In the fall of 2010, Stephen Elop became CEO of Nokia. In a letter to employees, he acknowledged that the company was lagging behind competitors and compared the situation to a man on a burning oil platform. In 2011, Nokia partnered with Microsoft, making Windows Phone its primary platform. Later, Microsoft acquired Nokia's mobile division but failed to sustain the business, laying off thousands of employees and writing off billions. Nokia then sold its feature phone division to HMD Global and focused on equipment for operators and data centers. In 2024, it acquired Infinera for $2.3 billion, and in 2025, Justin Hotard, former head of Intel's data center division, became the new CEO. Nvidia acquired a 2.9% stake in Nokia and agreed to collaborate. Since the start of 2026, Nokia's shares have risen 90%, and the growth forecast for its optical and IP networks division has been raised to 18-20%. However, mobile networks still account for more than half of revenue, and their growth is slowing. The company also faces component shortages and dependence on big tech companies' plans.