As global demand for AI-ready networks accelerates, Nokia is reshaping its business to position itself at the center of next-generation connectivity.

Nokia Oyj is intensifying its focus on the artificial intelligence infrastructure boom, unveiling a broad restructuring plan designed to transform the Finnish telecommunications company into a key supplier of network systems for AI data centers. The shift marks one of Nokia’s most significant strategic pivots in recent years as it seeks to regain momentum in a rapidly evolving technology landscape.

Chief Executive Officer Justin Hotard said ahead of the company’s Capital Markets Day in New York that the new structure is expected to drive double-digit operating income growth over the coming years. Nokia forecast that its annual operating profit will reach between €2.7 billion and €3.2 billion by 2028, reflecting a renewed focus on efficiency and long-term profitability.

Market Reaction and AI-Driven Prospects

Despite the company’s ambitious plans, Nokia’s shares fell as much as 6.3% in Helsinki on Wednesday, marking the fifth consecutive day of declines. The selloff follows a strong surge last month, when Nvidia Corp. announced a $1 billion equity investment that gave the chipmaker a 3% stake in Nokia. Subsequent market volatility and concerns about a broader AI-driven bubble, however, weighed on the stock.

The restructuring underscores how critical AI infrastructure has become for Nokia’s future. Once the world’s most valuable mobile phone company, Nokia has struggled in recent years to prove that its mobile network division can deliver sustained growth. The explosive rise in artificial intelligence — and the massive data-center buildouts required to support it — offers Nokia a potentially transformative opportunity.

A Streamlined Structure for a New Growth Cycle

Beginning in January, Nokia will reorganize its operations into two major divisions in an effort to simplify its corporate structure and focus on areas of highest potential.

The first division, Network Infrastructure, will encompass Nokia’s optical networking systems, which provide the ultra-high-capacity fiber lines essential for moving enormous volumes of AI-related data. The second division, Mobile Networks, will retain its role as the backbone of Nokia’s radio, wireless and mobile connectivity business. This unit will also absorb the company’s patent portfolio under Nokia Technologies, as well as its cloud and network services operations.

Hotard said the shift is intended to position Nokia “directly where we see the opportunity,” adding that winning in AI requires being the leader in connectivity. The restructuring will also include the sale of four underperforming assets, among them the company’s fixed wireless access portfolio and its microwave backhaul division.

Positioning for the AI Data-Center Supercycle

Although AI and cloud clients accounted for just 6% of Nokia’s net sales in the third quarter, company executives describe the segment as the largest opportunity ahead. Demand for advanced optical networking hardware, high-performance IP routing and upgraded fiber systems is expected to soar as companies race to build the infrastructure needed for modern AI workloads.

To strengthen its capabilities, Nokia has recently acquired Infinera Corp., expanding its presence in data-center networking. It has also begun integrating Nvidia chips into next-generation 5G and 6G radio components, deepening its ties with Silicon Valley’s most valuable company. Additionally, Nokia hired Finland’s former ambassador to the U.S. to help expand its defense-related networking solutions.

The AI-focused division will continue to be led by David Heard, who is overseeing Nokia’s push into optical networking, IP switching and routing upgrades.

Mobile Networks: Strong Technology, Weak Returns

Despite its technological depth, Nokia’s mobile networks business has struggled to deliver consistent returns. Hotard acknowledged that the division has “not generated an acceptable return,” stressing that the priority is to build a more profitable business rather than simply a larger one.

After the recent departure of Tommi Uitto, Hotard will serve as interim head of the mobile networks unit. Meanwhile, Raghav Sahgal, who previously led the cloud and network services division, will assume the role of Chief Customer Officer.

A Measured Expansion into Defense

Nokia’s defense operations will continue as a standalone “incubator” unit. While the company plans to expand its presence in the defense connectivity sector, Hotard said this segment is not expected to approach the revenue scale of its core divisions in the near term.

Looking Ahead

Nokia’s restructuring marks a decisive move to align the company with the accelerating global rollout of AI infrastructure. With Nvidia’s backing, strong demand from hyperscalers and telecom operators, and a sharpened corporate focus, Nokia is positioning itself as a critical enabler of next-generation connectivity.

Whether these changes deliver the anticipated financial turnaround will depend on the company’s ability to scale its AI-centric operations, streamline execution, and capitalize on the massive investment cycle now reshaping the global technology ecosystem.

Iceye, the Finnish satellite company increasingly embedded in Europe’s defense strategy, has raised new capital at a €2.4 billion ($2.8 billion) valuation. The round, led by US venture firm General Catalyst, includes €150 million in fresh equity and €50 million in secondary sales for early investors.

CEO Rafal Modrzewski said Iceye reached profitability this year, but accelerating satellite launches has become critical amid Europe’s rapid military build-up following Russia’s invasion of Ukraine. “Nobody wants Europe to be ready in five years,” he said. “People want Europe to be ready tomorrow.”

Founded in 2014, Iceye originally focused on environmental monitoring before shifting to defense. Its synthetic aperture radar (SAR) satellites can capture high-resolution images through clouds, smoke, and darkness – capabilities increasingly sought after by governments. The company has secured deals with the US, UAE, Japan, and, more recently, a growing list of European armed forces including Poland, Portugal, Finland and the Netherlands. Two more agreements in Europe are under discussion.

To expand production capacity, Iceye formed a joint venture with German defense group Rheinmetall AG earlier this year. Rheinmetall expects up to €2 billion in satellite-related orders in upcoming quarters tied to the partnership.

General Catalyst, now one of Europe’s most active defense investors, will take a board seat through its head of Europe, Jeannette zu Fürstenberg. “It’s one of the fastest-moving segments in defense and government procurement,” she said.

Iceye launched 25 satellites this year and plans to scale to one per week next year. Revenue is expected to exceed previous forecasts after Modrzewski projected earlier that sales would double to more than €200 million in 2025.

The latest round drew institutional support from AP Møller Holding, Bpifrance, Finnish investors, and several Polish backers including BGK’s investment arm and the family office of InPost founder Rafal Brzoska. Iceye has raised €600 million to date.

With fresh capital, the company plans to strengthen its software and data-analysis tools, aiming to provide clients with real-time intelligence. “At the end of the day, nobody buys satellites just to own satellites,” Modrzewski said. “People want to understand what their enemy is doing – and what they’re about to do.”

Alphabet Inc. is closing in on Nvidia Corp. in the race for tech-market dominance as strong demand for its new Gemini AI models and growing interest in its in-house AI chips lift the company’s shares. The Google parent rose 2% on Wednesday, bringing its market value to roughly $3.9 trillion, just $300 billion shy of Nvidia’s $4.2 trillion valuation.

The rally adds to a stunning run that has seen Alphabet gain about 37% since mid-October, adding nearly $1 trillion in market value over that period. Investors are increasingly betting that Alphabet’s advances in both AI software and hardware could reshape the competitive landscape.

A major catalyst came from a report that Meta Platforms Inc. is in discussions to start using Google’s tensor processing units – or TPUs – in its data centers beginning in 2027. Meta may also rent TPU capacity through Google Cloud next year. Such a partnership would give Alphabet’s chips a high-profile customer and challenge Nvidia’s position as the dominant supplier of AI accelerators.

The prospect of real competition sent Nvidia shares down 5.1%, with rival chipmaker AMD falling 7.8%. Nvidia’s valuation has cooled to 26 times forward earnings, well below its long-term average. Alphabet, boosted by the excitement surrounding Gemini, now trades at 27 times forward earnings, up sharply from past levels.

Analysts say the developments highlight a shift in market sentiment. Alexandra Morris, investment director at Skagen AS, said the belief that Nvidia alone would supply chips for the global buildout of AI data centers “has changed,” though she added that TPUs still need to prove they can match Nvidia’s efficiency and compute performance at scale.

The surge in Alphabet shares has pushed its relative strength index to about 75, a level many technical analysts consider overbought. Matthew Maley of Miller Tabak noted that Alphabet could assume a “leadership role” in the AI industry but may also be due for a near-term pullback.

Even so, the momentum reflects growing expectations that Alphabet may play a much larger role in the AI hardware market than previously assumed – potentially setting up a reshaping of the global tech leadership rankings.

Uber Technologies Inc. has begun offering fully driverless rides in partnership with WeRide Inc. on Yas Island in Abu Dhabi, marking a significant expansion of autonomous mobility in the Middle East. The companies launched their initial pilot with safety operators in late 2024. Now, a year later, select UberX and Uber Comfort riders can be matched with a completely driverless vehicle across a 12–square-mile area.

Riders can also choose a new “Autonomous” option in the Uber app, which increases the likelihood of receiving a robotaxi and is priced similarly to Uber Comfort. Trips beyond Yas Island, including routes from Abu Dhabi International Airport and other surrounding islands, will continue to operate with a safety operator for the time being. This broader semi-autonomous service covers approximately 30 square miles.

Uber and WeRide plan further expansion within Abu Dhabi and intend to bring driverless operations to Dubai in the near future. Their partnership extends well beyond the UAE. Earlier this year, the companies agreed to launch in 15 additional cities worldwide, including Riyadh, where service with safety operators has already started. In the United States, Uber currently offers driverless rides through an existing partnership with Alphabet Inc.’s Waymo in Phoenix, Austin, and Atlanta.

Since selling its in-house autonomous division in 2020, Uber has shifted toward establishing itself as a global platform for autonomous mobility, investing heavily in technology partners such as WeRide and forging more than 20 partnerships focused on AV deployment. The company said that dozens of Uber-managed WeRide vehicles are currently operating in Abu Dhabi and that the fleet will expand with rising demand.

WeRide, whose shares trade in both the US and Hong Kong, recently reported a third-quarter net loss of 307 million yuan ($43 million), an improvement from a 1.04-billion-yuan loss a year earlier. The company now holds autonomous driving permits in eight countries as it accelerates international growth.

For the UAE, the launch of fully driverless rides on Yas Island reinforces the country’s ambition to become a leading global hub for smart mobility. With further expansion planned across Abu Dhabi and Dubai, the region is positioning itself at the forefront of the autonomous transportation industry.

Boston Dynamics’ four-legged robot Spot, once best known for viral dance videos set to “Uptown Funk,” is rapidly becoming one of the most controversial new tools in North American policing. Five years after its commercial debut, the 75-pound, German-Shepherd-sized robot is now deployed in more than 60 bomb squads and SWAT teams across the US and Canada – and that number is growing.

Spot’s agility, ability to climb stairs, open doors, and traverse hazardous environments has made it attractive to police departments facing armed standoffs, hostage situations, and chemical incidents where human officers – or real K-9 units – would be in danger. But the rise of these semi-autonomous robot dogs is sparking a heated conversation about ethics, oversight, and the increasing militarization of civilian law enforcement.

From Viral Star to Tactical Tool

While Spot’s public persona has been shaped by choreographed online performances, its capabilities go far beyond entertainment. The robot can navigate uneven terrain, conduct autonomous patrols, identify gas leaks, and inspect dangerous environments without risking human life.

Police departments have taken note. Spot has already been used in several high-risk events:

• Florida (2022): Monitored an armed suspect who had crashed his vehicle during an attempted kidnapping.
  
• Massachusetts (2023): Assessed a chemical waste accident at a middle school in North Andover.
  
• Hyannis, MA (2023): Assisted in a hostage situation where a suspect held his mother at knifepoint and fired at officers. Spot cornered the suspect, enabling police to deploy tear gas.
  

An Expensive Shift Toward Robotic Policing

Spot’s base price starts around $100,000, but many departments pay significantly more once accessories and specialized equipment are included. Massachussetts State Police, for instance, spent around $250,000 per unit, financed largely through state grants.

The investment is part of a broader trend. Defense and public-safety tech funding surpassed $28 billion in 2025 – a 200% increase year-over-year, even as the wider venture market slowed. Agencies are increasingly reaching for advanced robotics, often for life-saving purposes:

• ICE spent $78,000 on a robotic tool from Icor Technology capable of deploying smoke bombs.
  
• Large police forces are deploying military-grade robots such as PackBots, originally developed by iRobot for battlefield operations.

A Growing Global Footprint

Boston Dynamics says roughly 2,000 Spot units are now in operation worldwide. In addition to US and Canadian agencies, Spot has been adopted by:

• The Dutch Ministry of Defense
  
• Italy’s national police
  
• Multiple industrial organizations, including manufacturers and utilities

Ethical Concerns and Calls for Oversight

While robots like Spot can improve officer safety, critics warn that their growing presence risks normalizing a more militarized approach to public safety.

Civil liberties groups – including the Electronic Frontier Foundation (EFF) – are calling for clear legal frameworks governing how robots are deployed.

“You can’t rely on the goodwill of a particular company,” said EFF researcher Beryl Lipton. “There have to be rules about how these technologies are used.”

Lipton also criticized the trend of presenting robots as friendly or pet-like. “Calling it a ‘robot dog’ normalizes the technology. It’s not a dog – it’s another piece of police tech.”

Public skepticism has already led to pushback. The New York Police Department temporarily suspended its use of Spot in 2021 after public backlash over cost and concerns about surveillance.

Experts Urge Clear Boundaries

Law professor Ryan Calo of the University of Washington warns that overusing robotics in policing may weaken community trust.

“The unease people feel around robotics is not just a psychological quirk – it’s rooted in real concerns,” he said. “Used indiscriminately, robots can further dehumanize police.”

Calo supports the use of robots in predefined, high-risk scenarios, not as general-purpose tools.

“No one wants police to risk their lives unnecessarily,” he said. “But we also don’t want to live in a robotic police state.”

The Future of Robotic Policing

Despite ethical debates, police demand for Spot and similar robots continues to grow. Officers cite advantages in:

• Battery life (Spot runs ~90 minutes, longer than most drones)
  
• Indoor performance and mobility
  
• The ability to run autonomous missions
  
• Access to areas too dangerous for humans

Aerospace and defense startup Ursa Major Technologies Inc. has closed a $100 million equity funding round – bringing its total valuation to $600 million. The round was led by VC firm Eclipse, with participation from Woodline Partners, Principia Growth, XN, and Alsop Louie Partners, alongside an additional $50 million in debt financing.

Founded in 2015 and headquartered in Colorado, Ursa Major is emerging as a key player in next-gen propulsion systems for missiles, space launch vehicles, and hypersonic platforms. The company reported $115 million in revenue during the first three quarters of 2025 and is on pace to double its workforce to 500 employees by year-end.

Scaling Rocket Motor Production

Ursa Major plans to use the fresh capital to scale production of its solid rocket motors – which have applications in systems like Tomahawk missiles – from 4 to 40 units per week over the next 12-18 months. The funding will also accelerate development of the company’s hypersonic engine technology and propulsion systems, critical components in the growing national defense and aerospace race.

“I’m here to do this on a size and scale that matters,” – Dan Jablonsky, CEO, Ursa Major

Jablonsky emphasized that the company aims to reach cash flow breakeven with this round and wants to remain IPO-ready, should market conditions align for a public debut.

Defense Tech in High Demand

The announcement underscores Silicon Valley’s surging interest in defense and aerospace innovation, as the Pentagon ramps up investments in next-gen tech amid global geopolitical tensions. Recent U.S. Department of Defense reforms aimed at streamlining procurement have made it easier for startups like Ursa Major to compete for major contracts.

“The signal it sends is fantastic,” – Seth Winterroth, Partner at Eclipse

Strategic Momentum & Leadership Boost

The company recently welcomed Ron Sugar, former Northrop Grumman CEO, and Gilman Louie, ex-head of the CIA’s venture firm In-Q-Tel, to its board – strengthening Ursa Major’s ties with both defense and capital markets.

Despite a temporary pause in hypersonic field testing during the U.S. government shutdown, CEO Jablonsky remains optimistic:

“That slowed down our milestones, but we’ll recover.”

What’s Next?

Ursa Major is uniquely positioned at the intersection of space innovation, defense modernization, and hypersonic advancement. With its latest funding and experienced leadership team, the company is gearing up to lead the next era of propulsion systems – and possibly go public in the near future.