Nokia deepens Google Cloud tie-up with Gemini AI agents for network operations
The move follows a 49% surge in AI and Cloud sales and a $1 billion equity investment from Nvidia, as Nokia targets fully automated network operations by 2027.
Nokia has extended its agreement with Google Cloud to embed Gemini AI agents directly into its network operations, marking what the company describes as its most significant enterprise software partnership to date. The collaboration introduces six specialised AI agents, including Router, Event Triage, KPI Selector, Anomaly Reasoner, and Dashboard agents, designed to manage network tasks and resolve operational problems independently or in collaboration.
Built using Google Cloud’s Agent Development Kit on the Gemini Enterprise Agent Platform, the solution aims to reduce network problem-solving times by 50–80 per cent and enable fully automated, self-driving network operations. The platform is scheduled to launch as a Software-as-a-Service offering on the Google Cloud Marketplace in September 2026, with additional capabilities expected to roll out across Nokia’s broader network portfolio through 2027.
The announcement follows strong financial performance from Nokia, which reported a 49 per cent year-on-year surge in AI and Cloud customer net sales in the first quarter of 2026. These sales now account for 8 per cent of total group revenue, supported by over €1 billion in new orders. The company also secured a $1 billion equity investment from Nvidia in October to accelerate AI integration into its 5G radio access networks and broader infrastructure.
Nokia shares surged more than 7 per cent following the announcement of the expanded partnership. The stock has delivered a 166 per cent total return over the past 12 months, significantly outpacing the S&P 500’s 23 per cent return during the same period. Wall Street consensus currently stands at a "Moderate Buy" with a mean price target of $15.81.
CEO Justin Hotard stated that demand remains strong, particularly in AI and Cloud, where net sales grew 49 per cent. Nokia has raised its 2026 growth guidance for Network Infrastructure to 12–14 per cent from 6–8 per cent and for Optical and IP Networks combined to 18–20 per cent from 10–12 per cent, citing hyperscaler capital expenditure expectations rising to over $700 billion in 2026.
