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

In fall 2010, Stephen Elop became CEO of Nokia and admitted in a letter to employees that the company was falling behind competitors, comparing its situation to a man on a burning oil platform. In 2011, Nokia formed a partnership with Microsoft, making Windows Phone its primary platform, and later Microsoft acquired Nokia's mobile division but failed to sustain the business, cutting thousands of jobs and writing off billions. Nokia then sold its basic phone division to HMD Global and focused on equipment for operators and data centers. In 2024, it purchased 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, shares have risen 90%, and the growth forecast for the optical and IP networks division has been raised to 18-20%. However, mobile networks still account for over half of revenue, with slowing growth, and the company faces component shortages and dependence on Big Tech's plans.