Nokia expands partnerships with TIM Brasil, Deutsche Telekom in AI technology push

March 2 (Reuters) - Nokia Nokia.HE said on Monday it was expanding partnerships with TIM Brasil TIMS3.SA and Deutsche Telekom DTEGn.DE, as the Finnish 5G gear maker seeks to capitalise on adoption of AI-based technologies worldwide.

These deals, which follow last week's announcement of a multi-year contract with Telefonica TEF.MC to provide network solutions for data centres across Spain, highlight how artificial intelligence enabling technology is creating new revenue streams for Nokia.

It will expand the network partnership with TIM Brasil—which previously covered 5G network modernisation and its preparation for AI-based services in the state of Sao Paulo—to a further 14 states across four regions, reaching around 42% of Brazil's population.

The partnership enables TIM Brasil to offer AI-driven services to business customers using Nvidia's NVDA.O AI-RAN platforms, Nokia said in a statement seen by Reuters ahead of its scheduled publication.

In an earlier statement on Monday, Nokia and Deutsche Telekom said they would expand their collaboration to speed up development of cloud-based, disaggregated and AI-native radio access network (RAN) technology.

This will lay down building blocks for programmable and automated mobile networks that are simpler, faster and better optimised for future connectivity needs as a global AI boom reshapes the industry, they said.

These contracts reflect telecom operators' global race to upgrade their networks to 5G in order to enable broader AI adoption, creating a significant market for equipment providers like Nokia and Ericsson ERICb.ST.

Last year, Nokia acquired U.S. optical networking firm Infinera, aiming to tap into the AI boom, a deal that was followed by a $1 billion equity investment from chipmaker Nvidia, which bought a 2.9% stake in the Finnish group.

The new deals fit into one of Nokia's largest restructuring efforts since selling its iconic mobile phone business more than a decade ago, as it bets on AI and data centre demand to offset weak spending and contract losses in the 5G field.