Nokia reports plans to integrate NVIDIA GPUs into radio access network portfolio

Nokia plans to reverse its declining Radio Access Network (RAN) revenue share by integrating NVIDIA-powered AI-RAN products into its portfolio starting in 2027. This strategy addresses a $30 billion-plus market and matters to enterprise and technical leaders monitoring shifts in telecom network capabilities and supplier dynamics.

Market Overview

The RAN market includes a $30 billion annual macro-RAN segment where baseband and radio components are central. NVIDIA's partnership involves a $1 billion investment into Nokia and the introduction of AI-enabled RAN products, with trials set for 2026. This collaboration targets transforming telecommunications infrastructure into a distributed computing platform aligned with broader Artificial Intelligence (AI) and autonomous use cases.

Key Findings

Nokia and NVIDIA aim to achieve performance and cost parity with existing RAN solutions, focusing on return on investment based solely on RAN performance without relying on broader new revenue streams. Nokia’s installed base exceeding one million AirScale units indicates transition paths prioritizing purpose-built D-RAN solutions with Graphics Processing Unit (GPU) integration over virtualized or cloud-based models.

NVIDIA indicated the GPU optimized for D-RAN will have pricing comparable to current components but deliver approximately twice the capacity. Nokia targets a gross margin improvement to 48%–50% by 2028 for its Mobile Infrastructure Business Unit.

Technology Analysis

The partnership focuses on GPU integration enabling AI-RAN capabilities that Nokia and NVIDIA view as key to supporting societal transformations driven by autonomous vehicles, robotics, and digital twins. Nokia emphasizes a pragmatic approach, addressing operators' need for clear ROI and risk management.

The shift toward GPU-based RAN components is expected to advance AI-RAN and Cloud-RAN developments but will not alter the balance between centralized and distributed RAN architectures or significantly influence Open RAN (ORAN) adoption or 6G growth trajectories.

Forecast and Analyst Outlook

Nokia’s strategy aims for near-term RAN revenue share stabilization and longer-term growth, especially in North America, Europe, India, and select Asia-Pacific markets. Market concentration among the top five RAN suppliers is increasing, and Nokia plans to differentiate through software innovation and its partnership with NVIDIA.

This focus is expected to impact vendor dynamics but not dramatically shift overall market structure. Execution of the collaboration will determine Nokia's positioning in the evolving AI-native network and 6G landscape.

Conclusion

Nokia’s partnership with NVIDIA introduces AI and GPU-enabled RAN products aiming to stabilize and grow Nokia’s share within the $30 billion macro-RAN market by targeting performance parity and cost efficiency. This approach reflects a cautious, ROI-driven strategy aligned with telecom operators’ requirements. The collaboration's outcomes may influence supplier competition and AI-RAN adoption without substantially altering broader market architectures or 6G prospects. This Analyst Signals brief reflects a neutral, fact-based summary of the original research note.