Nokia Boosts AI and Cloud Sales by 123% and Advances AI-Driven RAN with Nvidia

Image: Illustrative image · Leo-setä · CC BY 2.0 · Source

Nokia reports a 123% year-on-year increase in AI and cloud sales, securing €1.5 billion in new orders for Q3 2026. The firm highlights progress in AI-RAN collaboration with Nvidia, involving nearly 20 operators for upcoming lab and commercial trials.

Nokia has highlighted artificial intelligence as a core strategic focus following its third-quarter 2026 financial results. CEO Justin Hotard reported a 123% year-on-year increase in AI and cloud sales, with €1.5 billion in new orders booked during the quarter. The company also indicated a strong backlog of pending orders that projects further growth in this segment.

According to Hotard, Nokia considers itself well positioned to meet the demand for more extensive, distributed, and highly connected AI infrastructure. He emphasized continued investments aimed at differentiating Nokia and co-innovating alongside large cloud service providers.

The Q3 results showed a net profit of €156 million, a 95% increase from the prior year. Net sales reached nearly €5.2 billion, up 10% nominally and 9% at constant currency. Mobile Infrastructure division revenue grew by 5% to €2.9 billion, partly due to accelerated recognition of revenue originally planned for Q4. This growth benefited from commercial discipline and ongoing cost-cutting measures.

Nokia is also progressing with the integration of optical networking company Infinera, acquired in 2025. The integration is now expected to complete by the end of 2026, one year ahead of schedule, having already generated €200 million in net synergies.

In parallel with the earnings release, Nokia and its strategic partner Nvidia showcased advances in AI-powered Radio Access Networks (AI-RAN) during Nvidia’s GTC 2026 event in Berlin. Nvidia is both investor and technology collaborator in this area.

Nokia’s CTO for AI, Pallavi Mahajan, and Nvidia’s Senior Vice President of Telecoms, Ronnie Vasishta, jointly revealed that nearly 20 operators worldwide, including 10 from the EMEA region, have committed to lab and commercial trials of AI-RAN technologies. The partnership was initially announced 12 months ago with Nvidia investing $1 billion (€890 million) in Nokia.

Planned 2027 tests include deployments by BT Group, Deutsche Telekom, and Elisa—the latter gearing towards commercial rollout. In the U.S., T-Mobile completed the first in-service AI-RAN call worldwide, while France’s Orange has begun introducing new AI-driven voice and enterprise services leveraging this technology.

Both executives noted the rapid development pace, describing it as proceeding "at the speed of light," and stressed the tangible value AI brings by enhancing RAN efficiency, especially spectrum utilization. They foresee a future in which the boundary between networks and computing infrastructure becomes increasingly blurred, creating new operator opportunities beyond 5G and into 6G eras.

Vasishta explained that Nvidia’s engagement with software-defined RAN began eight years ago, and Nokia’s inclusion accelerated the commercialization trajectory. He affirmed that operators globally exhibit diverse approaches but share a growing commitment to AI-enabled RAN.

This progress demonstrates Nokia’s strategic emphasis on AI and cloud integration and the transformative potential of AI-RAN partnerships in shaping next-generation telecom networks.