Nokia, NestAI Secure €100M to Build AI for Defense
▼ Summary
– Finnish startup NestAI raised €100 million in funding led by Tesi and Nokia to develop AI products for unmanned vehicles, autonomous operations, and command platforms.
– NestAI partnered with Nokia to create AI for defense applications and physical AI, which applies large language models to robotics and real-world uses.
– The funding will establish Europe’s leading physical AI lab, as announced by co-founder Peter Sarlin at the Slush 2025 conference in Helsinki.
– NestAI’s focus on European sovereignty and defense needs, influenced by the Ukraine-Russia war, includes supporting the Finnish Defence Forces in AI adoption.
– Sarlin, who funds NestAI through his family office PostScriptum, serves as chairman but not CEO, while the startup recruits talent from companies like Intel, Kongsberg, and Palantir.
A Finnish technology startup named NestAI has successfully secured €100 million in a major funding round. This investment was spearheaded by Finland’s sovereign wealth fund, Tesi, alongside the telecommunications leader Nokia. The capital injection is earmarked for developing sophisticated artificial intelligence products intended for defense-related applications. These applications include unmanned vehicle systems, autonomous operational platforms, and advanced command and control infrastructure.
In a strategic move, NestAI has also formalized a collaborative partnership with Nokia. The alliance will concentrate on creating AI solutions specifically for the defense sector, with a particular emphasis on advancing “physical AI.” This emerging field focuses on applying large language models and similar AI technologies to control robotics and manage interactions within physical environments.
The fresh funding will empower the startup to construct what it describes as “Europe’s leading physical AI lab.” Co-founder Peter Sarlin announced this ambitious goal during his appearance at the Slush 2025 technology conference held in Helsinki. The domain of physical AI is witnessing rapid expansion, attracting attention from both major technology corporations and agile startups. NestAI’s substantial funding round signals a clear opportunity for European enterprises to cultivate indigenous technological solutions. This drive for technological self-reliance has been partly accelerated by the ongoing conflict in Ukraine, shifting regional priorities toward bolstering defense capabilities. Reflecting this trend, the company recently declared its intention to assist the Finnish Defence Forces in their adoption of artificial intelligence.
This focus on achieving technological sovereignty likely explains why NestAI maintained a low profile until now. The company is emerging from its stealth phase with significant backing from Sarlin, who has been financing the venture through his family investment office, PostScriptum, over recent months. Sarlin articulated the company’s foundational mission, stating that NestAI was established from its inception to become Europe’s premier physical AI laboratory, thereby driving forward the continent’s technological independence. He emphasized that the partnership with Nokia represents a critical step toward securing Europe’s defense capabilities and overall sovereignty.
Sarlin brings considerable experience to the venture, having previously sold his AI company, Silo AI, to AMD for $665 million last year. Since that transaction, he has been actively engaged in philanthropy and investment, supporting other startups such as Legora and Lovable. While he is deeply involved in building NestAI, Sarlin continues his professional role at AMD and will serve as the startup’s chairman rather than its chief executive officer.
Although NestAI has not yet appointed a CEO, it is rapidly assembling a skilled team. The growing roster includes professionals with extensive backgrounds in AI research and hardware development, many of whom have experience in defense-adjacent projects. A notable portion of the staff previously held positions at Intel, while others have been recruited from prominent firms like Kongsberg, Palantir, and Saab, bringing a wealth of relevant expertise to the startup’s ambitious endeavors.
(Source: TechCrunch)
