Nokia (NOKIA.HE) announced on Wednesday its acquisition of the world's largest API hub and marketplace from U.S.-based company Rapid, a strategic move aimed at expanding its revenue streams from 5G and 4G networks. With this purchase, the Finnish telecom giant aims to leverage the growing demand for 5G-related technology and capitalize on the rise of artificial intelligence by diversifying its market offerings.

This acquisition gives Nokia control over Rapid’s technology and R&D units, enabling its clients to integrate their networks, manage API usage, and collaborate with the platform's large developer community. As a result, Nokia can offer telecom operators tools to simplify services and improve network performance through efficient API management.

APIs, or application programming interfaces, are essential code-based components that allow different software systems to communicate, exchange data, and share functionalities. They enable standardized, seamless interactions between various software applications, which is critical for the dynamic demands of 5G networks.

With APIs in advanced 5G environments, Nokia’s clients can offer faster, more secure, and precise data services, such as real-time information on a user’s location, network connectivity, or device status. This enhanced functionality is expected to benefit various sectors, including smart cities, autonomous vehicles, and IoT ecosystems, which rely heavily on high-speed and low-latency network connections.

As telecom companies, including Nokia, navigate the competitive landscape of 5G, they are exploring new ways to monetize their technology investments. By acquiring Rapid’s API platform, Nokia is positioning itself to attract investments in next-generation technologies, supporting its broader strategy to become a key player in the 5G and AI-driven market transformation.