Nokia and Nvidia introduce the inaugural commercial AI-RAN.

      The companies driving the AI boom are now seeking involvement in the mobile network sector. Nokia has announced it has created the industry's first commercial AI-RAN platform in collaboration with Nvidia, describing it as the most significant transformation in radio technology in decades.

      RAN, which stands for radio access network, refers to the equipment that connects phones to the broader network. An AI-RAN operates using AI chips rather than fixed hardware. Nokia claims that this method could enhance spectral efficiency by over 100% by 2028.

      In simple terms, this means transmitting significantly more data through the same frequency channels. With spectrum being limited and expensive, doubling its capacity is a substantial assertion and a notable opportunity.

      The numbers and the proposal

      Nokia reports that the platform has already demonstrated more than 20% in spectral improvements. It anticipates reaching 50% by 2027 and exceeding 100% by 2028. Trials are set to commence at the end of this year, with plans for commercial rollout in 2027.

      The system integrates Nokia’s anyRAN software with Nvidia’s Aerial computing platform. Network operators will not need to dismantle their existing infrastructure; they can attach an AI unit to current base stations or operate it via the cloud.

      The fundamental change is in the business model. Nokia aims to offer upgrades as software subscriptions rather than requiring expensive hardware replacements. Chief executive Justin Hotard indicated that this will be the primary driver of its RAN business, as he mentioned to Bloomberg. The cost of hardware, he noted, will not be “materially” higher than current prices.

      A deal supported by a $1bn investment

      There is substantial financial backing for this partnership. Last October, Nvidia acquired a $1bn stake in Nokia. This collaboration's first major product has generated investor interest, leading to a roughly 90% increase in Nokia's shares this year.

      Nvidia’s CEO Jensen Huang presented it in grand terms, stating that the radio network is “the next AI infrastructure,” with the vision to transform the RAN into “a planet-scale AI computer.”

      The overarching aim is to process data nearer to the user. Reduced latency is beneficial for applications such as robotics and autonomous vehicles, and it increases the presence of Nvidia chips within the network.

      The larger expansion

      Nvidia isn’t limiting its efforts to Nokia. At Mobile World Congress, it collaborated with Ericsson, Deutsche Telekom, T-Mobile, SK Telecom, and SoftBank to develop 6G using AI-native technology.

      Nokia's competitor, Ericsson, is also upgrading, albeit with a different strategy. They chose to remain solely a mobile network supplier and did not pursue data centers. “We chose to operate in a different segment of the value chain,” stated its outgoing chief.

      Why this is significant

      This initiative aligns with a larger trend. Nvidia continues to integrate into various sectors connected to AI, from Japan’s robotics industry to telecommunications infrastructure, even as it has had to reduce its list of Asian buyers due to U.S. regulations.

      For operators, the appeal is straightforward: handle more traffic without the need to acquire additional spectrum. Whether AI-RAN can deliver these results in practice will be determined when trials begin in 2027.