Financial Times: Nokia Reinvents Itself from iPhone Casualty to $1 Billion Nvidia Deal
According to the Financial Times, Finnish technology group Nokia has completed a remarkable strategic turnaround, evolving from a former global mobile phone champion into a key player in advanced telecommunications and artificial intelligence infrastructure, following a landmark $1 billion strategic investment agreement with NVIDIA in 2025.
The report highlights that Nokia once dominated the global mobile handset market, commanding approximately 26 percent of worldwide market share in 2000. However, the company rapidly lost its leadership position after the launch of the iPhone by Apple, the surge in Android-powered devices, and Nokia’s strategic reliance on Microsoft’s Windows Phone platform. These shifts ultimately led to a sharp decline in Nokia’s handset business and the sale of its mobile phone division in 2014.
Following its exit from consumer handsets, Nokia undertook a comprehensive restructuring of its operations, refocusing on telecommunications infrastructure, cloud networking, and next-generation connectivity. The company strengthened its capabilities through major acquisitions, including Alcatel-Lucent and Siemens Networks, positioning itself as a global supplier of 5G networks, core telecom systems, and cloud-based solutions.
Under the new agreement with Nvidia, the U.S. technology giant will receive approximately 166 million newly issued Nokia shares, equivalent to about 2.9 percent of the Finnish company’s equity. The strategic partnership aims to accelerate the development of AI Cloud platforms, data center networking solutions, and the integration of artificial intelligence technologies into telecommunications networks.
The Financial Times notes that the partnership is expected to enhance Nokia’s competitiveness in fast-growing markets, particularly China, where demand for 5G infrastructure and cloud computing continues to expand at a rapid pace. This growth is seen as offering Nokia significant opportunities to scale its digital operations and strengthen its presence across the Asian technology landscape.
Financial markets reacted positively to the announcement, with Nokia’s share price rising by more than 20 percent, reflecting renewed investor confidence in the company’s long-term strategy and growth prospects within the technology infrastructure and artificial intelligence sectors.
Analysts quoted by the Financial Times describe the Nvidia partnership as a pivotal moment in Nokia’s transformation, placing the company at the center of the global race to build infrastructure supporting advanced AI applications. With accelerating worldwide demand for high-performance data centers and intelligent communication networks, the deal is expected to support sustainable long-term revenue growth and reduce Nokia’s reliance on the cyclical nature of traditional telecom equipment markets.
Founded in 1865, Nokia’s evolution from a paper mill to a mobile phone giant, and now to a core enabler of AI-driven digital infrastructure, underscores its ability to adapt to technological disruption and reassert itself as a major force in the modern technology landscape