Nokia completes $2.3B Infinera deal to power AI networks

Nokia completes $2.

• Nokia finalises Infinera acquisition to expand optical network reach and accelerate AI-driven data centre growth.
• Combined capabilities target surging bandwidth demand with end-to-end optical innovation and global delivery scale.

What happened: Nokia and Infinera join forces under one brand

Nokia has officially completed its $2.3 billion acquisition of US-based optical networking firm Infinera. The company has been absorbed into Nokia’s Network Infrastructure division, with both brands now operating under the Nokia name.

This move combines Nokia’s established presence among telecom operators, especially in Europe, with Infinera’s experience serving hyperscale data centres and submarine network operators. Nokia says the integration will allow for faster development of optical products across a range of use cases—from long-haul links to short-reach interconnects.

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Why it’s important

As AI technologies drive up data traffic, demand for fast, efficient optical connectivity is skyrocketing. Nokia notes that AI-related bandwidth is doubling each year, and the number of data centres worldwide is expected to double within five years. Meeting this demand requires not only more capacity, but also energy-efficient and low-latency solutions.

By combining Infinera’s optical engine expertise and vertical manufacturing capabilities with Nokia’s global footprint, the company hopes to deliver at scale—particularly to hyperscale operators who require large, fast shipments. As part of its longer-term strategy, Nokia also points to potential in newer areas, such as quantum-safe networking.