Nokia and Finnish NestAI Join Forces in €100M Deal to Revolutionise Defence Technology
Finnish startup NestAI has secured €100 million from Nokia and sovereign fund Tesi to build Europe’s leading physical AI lab, marking a major step towards technological sovereignty in defence and critical infrastructure.
Text by Martti Asikainen, 25.11.2025 | Photo Nokia
In a move set to transform Europe’s defence capabilities, Finnish AI innovator NestAI has secured €100 million in a powerhouse partnership with telecommunications leader Nokia and Finland’s sovereign wealth fund Tesi, marking one of the most significant investments in European defence technology this year.
Unveiled at the prestigious Slush 2025 technology conference in Helsinki, the announcement signals a new era for European technological sovereignty. NestAI is rapidly emerging as one of Europe’s most dynamic physical AI labs, pioneering breakthrough AI systems for unmanned vehicles, autonomous operations, and advanced command and control platforms that will reshape defence, security, surveillance, and logistics operations.
Strategic Alliance to Deliver Next-Generation AI Capabilities
The strategic alliance between Nokia and NestAI promises to deliver game-changing innovations by merging Nokia’s world-class expertise in secure connectivity and multimedia technologies with NestAI’s cutting-edge platforms in unmanned systems and next-generation AI. Together, they’re poised to accelerate the development of AI-driven capabilities that will give European defence forces a decisive operational advantage.
“At Nokia, we believe that the future of defence and critical infrastructure will be defined by secure, AI-native solutions,” said Justin Hotard, President and CEO at Nokia, his enthusiasm evident. “Our strategic partnership with NestAI is a testament to our commitment to innovation with partners. We are accelerating the development of next-generation capabilities for defence and national safety.”
The timing couldn’t be better. As defence forces worldwide embrace AI-driven technologies, Nokia has launched a dedicated defence incubation business unit to fast-track innovation with partners across the United States, Finland, and NATO and Five Eyes countries. The collaboration represents connectivity as a strategic asset—empowering faster, smarter, AI-enabled decision-making on the battlefield and beyond.
Visionary Leadership and Proven Track Record
For NestAI, this is just the beginning of an ambitious journey to build “Europe’s leading physical AI lab” and champion technological independence. The company is led by visionary co-founder Peter Sarlin, who previously achieved a stunning $665 million exit when he sold AI startup Silo AI to AMD last year. Now serving as chairman whilst continuing his role at AMD, Sarlin brings proven expertise and an inspiring track record to this bold new venture.
“Strategic partnerships are imperative to strengthen Europe’s security and resilience,” Sarlin declared. “Nokia’s role as a cornerstone of leading global technology and innovation enables us to accelerate our impact and deepen the operational advantage NestAI brings to European defence. This partnership lays the foundation for a future in which Europe sustains a technological edge.”
Tesi’s investment adds institutional strength and long-term vision to the equation. “We see NestAI emerging as a foundational technology partner for mission-critical defence and security environments across Europe,” said Juha Lehtola, Head of VC & Growth investments at Tesi. “It is the demonstrated progress and the direction of their solutions combined with Nokia’s global lead in secure, advanced connectivity that gives us confidence in their long-term significance.”
Building Europe's Technological Independence
NestAI is already making waves, having secured a contract to revolutionise AI adoption within the Finnish Defence Forces. The startup has attracted top-tier talent from technology and defence powerhouses including Intel, Kongsberg, Palantir, and Saab—assembling a dream team ready to tackle Europe’s most critical technological challenges.
This landmark investment arrives at a pivotal moment, as Europe intensifies efforts to build homegrown defence solutions and technological independence. Through forward-deployed engineering and world-class R&D capabilities, NestAI and Nokia are set to deepen collaboration with European defence forces and partners, ushering in a new chapter of innovation and security for the continent.
The future of European defence technology is here—and it’s being built in Finland.
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