Ericsson is defending its custom silicon strategy for AI-RAN, while leaving room for future GPU-based deployments.
The company argues that operators can gain value now from existing baseband hardware. Its main example is AI-native link adaptation. This helps radio networks adjust connections more intelligently. Ericsson says it can improve spectrum efficiency by 10%.
That figure matters in a flat radio access network market. Operators want more capacity without buying more spectrum. Ericsson says three operators already use the capability across 60,000 base stations.
During Ericsson’s third-quarter review, chief Per Narvinger addressed questions about custom ASICs versus GPUs. Analysts asked whether Ericsson had rejected GPU acceleration in baseband units.
Narvinger answered clearly: “We are not philosophically against anything. We try to do what makes business sense.”
He added that Ericsson has separated software and hardware in its architecture. This gives the vendor more flexibility later. For now, it sees custom silicon as faster and more cost-efficient.
The strategy gives Ericsson a near-term commercial message. Operators can activate AI functions on installed equipment. They do not need site visits or new hardware. That reduces deployment friction and speeds results.
However, GPUs remain attractive for some competitors and AI workloads. They offer strong processing power and a wider developer ecosystem. They may also support future AI models that need greater flexibility.
Ericsson is not closing that path. Narvinger said the company will keep evaluating the most efficient platform. But he stressed that AI benefits are already available.
“We have more than 60,000 base stations running this functionality,” he said.
He also stated: “AI is not something that will happen in 2028. It is happening here and now, in our networks.”
The financial argument is also central. Spectrum is expensive, and better efficiency can create major value. Narvinger linked the 10% gain to recent billion-dollar spectrum purchases.
“It is a revenue opportunity because it is obvious we are providing value,” he said.
Meanwhile, Ericsson continues to reshape its enterprise wireless operations. The company dissolved its standalone enterprise wireless division. It moved private 5G and neutral-host work into its networks business.
Åsa Tamsons, senior vice president and division head, confirmed her departure from the role. She said: “After eight and a half years at Ericsson… now is the right time for me to move on… This isn’t goodbye yet. I’ll share more… in due course.”
The move raises questions about Ericsson’s enterprise strategy. Yet the company frames it as a way to streamline research and development.
For the wider telecom market, Ericsson’s message is practical. AI in the RAN does not need to wait for new platforms. It can start with today’s base stations, if the software is ready.
