New Delhi, June 30: Nokia has announced its plans to acquire Infinera, a US-based optical networking company, in a deal worth USD 2.3 billion. The acquisition could position Nokia to take advantage of the growing demand for AI-driven data centres and strengthen its position in the optical networking business. By combining Infinera's expertise in intra-data centre communications and Nokia's global presence, the combination is anticipated to make use of the growing demand for AI-driven infrastructure and deliver innovative solutions to its customers worldwide.

As per a report of Reuters, Nokia taps AI boom with USD 2.3 billion Infinera purchase. Huawei has been dominating the Chinese market due to the limited presence of Western companies in the country. Nokia's acquisition of Infinera will position the company ahead of Ciena, which will make it the second-largest vendor in the optical networking market with a significant share, trailing behind Huawei. LG Electronics Adopts Human Rights Principles To Prevent Violations in the Company.

Nokia's CEO, Pekka Lundmark, highlighted the advantageous timing of the deal, aligning with the anticipated market recovery and the substantial investments driven by AI in data centres. Pekka Lundmark said, "AI is driving significant investments in data centres, one of the key attractions of this acquisition is that it significantly increases our exposure to data centres." Meta Purged Over 21 Million Pieces of Bad Content on Facebook and Instagram in India in May.

Facing challenges with declining sales of 5G equipment, telecom equipment manufacturers like Nokia are seeking ways to diversify their markets and tap into emerging sectors such as artificial intelligence. By acquiring Infinera, Nokia aims to supply more equipment to tech giants like Google, Alphabet, Amazon and Microsoft, which are heavily investing in constructing new data centres to meet the demands of the AI boom. With Infinera heavily operating in the U.S. market and Nokia having a stronger presence in Europe and Asia, the deal is viewed as complementary by Pekka Lundmark.

(The above story first appeared on LatestLY on Jun 30, 2024 03:26 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website