Finland’s NestAI lands €100M, partners with Nokia to build AI for defense applications

NestAI, a Finnish startup, has successfully raised €100 million (approximately $115 million) in a funding round spearheaded by Tesi, Finland's sovereign wealth fund, alongside tech giant Nokia. The startup aims to develop innovative AI solutions specifically tailored for unmanned vehicles, autonomous operations, and command-and-control systems. In conjunction with this funding, NestAI has forged a strategic alliance with Nokia, focusing on creating AI technologies for defense applications. The initiative seeks to pioneer 'physical AI,' integrating large language models and advanced technologies into robotics and practical applications. Co-founder Peter Sarlin announced at the Slush 2025 technology conference in Helsinki that this investment will enable NestAI to establish 'Europe’s leading physical AI lab.' The rise of physical AI has garnered significant attention from both major tech corporations and startups. The recent funding indicates a growing opportunity for European firms to cultivate local solutions, particularly as the continent's defense needs have intensified amid the ongoing Ukraine-Russia conflict. Recently, NestAI revealed its commitment to assist the Finnish Defense Forces in implementing AI technology. The decision to operate in stealth mode until now reflects NestAI's focus on enhancing national sovereignty. However, the company is now moving into a more public phase, supported by Sarlin, who has been personally investing in the venture through his family office, PostScriptum. 'NestAI has been established with the ambition to become Europe’s foremost physical AI lab, fostering technological independence,' Sarlin stated in an interview with TechCrunch. He emphasized that this collaboration is a crucial step towards bolstering Europe’s defense capabilities. Sarlin, who previously sold AI company Silo AI to AMD for $665 million last year, is also noted for his philanthropic efforts and investments in other startups, such as Legora and Lovable. While he continues to work at AMD, he will serve as chairman for NestAI, leaving the CEO position vacant for the time being. The company is rapidly expanding its team, attracting professionals with backgrounds in AI research and defense-related hardware, including many who previously worked for major companies like Intel, Kongsberg, Palantir, and Saab.