- Nokia is creating two new internal organizations: a Technology and AI group and a Corporate Development group
- Former Intel exec Pallavi Mahajan will lead the former
- Nokia is aiming to regain its footing during a slump in its traditional mobile networks business
Nokia is leaning into AI in a big way, creating a new Technology and AI organization and hiring Intel’s former data center and AI GM Pallavi Mahajan to lead it.
Mahajan will serve as Nokia’s Chief Technology and AI Officer. Nishant Batra, who has served as Nokia’s Chief Strategy and Technology Officer since the start of 2021, is set to leave the company at the end of September.
In addition to her recent stint at Intel, Mahajan’s prior experience includes VP roles at HPE and Juniper. At Nokia, Mahajan will oversee work done by Nokia Bell Labs as well as the company’s Technology and AI Leadership, and Group Security divisions.
“To succeed in the AI supercycle, we need to focus on where we can drive differentiation through our core technologies, strengthen our capabilities in security and AI, and maximize the value of partnerships in our ecosystem,” Nokia CEO Justin Hotard said in a statement. “Having a dedicated Technology and AI organization will be an important asset for us and our customers.”
Alongside the creation of the Technology and AI group, Nokia also announced a new Corporate Development organization. The latter will include Corporate Development, Strategic Partnerships, Mergers and Acquisitions, incubation activities and NGP Capital. Former private equity advisor and HPE executive Konstanty Owczarek will lead the unit. Both Mahajana and Owczarek will start October 1.
The shift comes after Nokia in July reported flat revenue thanks to declines in its Mobile Networks business (though Cloud and Network Services and Network Infrastructure growth were bright spots), the impact of tariffs and currency valuations. At the time, it lowered its profit guidance for the full year 2025.
Its decision to focus on AI is perhaps unsurprising given a newly released Gartner forecast calling for $1.5 trillion in worldwide AI spending in 2025. Gartner's report indicated over $259 billion of that will be spent on AI services, nearly $57 billion on AI Infrastructure software and $7.4 billion in AI-optimized infrastructure-as-a-service. In 2026, it predicted the worldwide spending figure will exceed $2 trillion.