NestAI has entered a strategic partnership with Nokia and secured a combined €100 million investment from Nokia and Finnish sovereign fund Tesi. The collaboration aims to accelerate the development of AI-powered defense and critical infrastructure technologies at a time when Europe is racing to preserve its technological edge. Positioned as one of the continent’s fastest-growing physical AI labs, NestAI will use the new capital and partnership to expand its role in unmanned systems, autonomous operations, and command-and-control platforms.
Funding and Strategic Context
The €100 million round, backed jointly by Nokia and Tesi, gives NestAI fresh capital to scale its technology and deepen its work with defense and security stakeholders. Nokia’s participation aligns with its broader strategy to build secure, AI-native connectivity solutions that underpin modern defense communications and infrastructure. Tesi’s involvement adds a long-term institutional investor focused on strengthening Finland’s position in strategically important sectors, particularly those tied to national and regional security.
Advancing AI-Powered Defense Capabilities
At the heart of the partnership is a joint effort to develop AI-native solutions for defense forces and critical infrastructure operators. NestAI’s platforms for unmanned vehicles, autonomous operations, and data-centric command-and-control systems will be integrated with Nokia’s expertise in secure connectivity, sensing, and multimedia. Together, the companies intend to push AI deeper into unmanned systems and modern information and knowledge management, enabling faster, more informed decision-making in complex operational environments.
Strengthening European Technological Sovereignty
Executives from both companies frame the deal as a contribution to European technological sovereignty in an increasingly contested security landscape. Nokia’s leadership presents the partnership as a way to accelerate next-generation capabilities that enhance national safety and critical infrastructure resilience. NestAI’s chairman Peter Sarlin underscores that the company was founded to deliver mission-critical physical AI at scale and that the collaboration with Nokia is designed to give European defense forces a sustained technological advantage.
Nokia’s Defense Incubation Strategy
The investment and partnership also highlight Nokia’s recently launched defense incubation business unit. This unit focuses on co-innovation with partners in Finland, the United States, and other NATO and Five Eyes countries as defense organizations adopt AI-native dual-use technologies. By aligning NestAI’s physical AI expertise with Nokia’s global footprint in secure advanced connectivity, the initiative positions both companies to play a larger role in next-generation defense modernization programs.
Investor Perspective and Growth Outlook
For Tesi, the deal reflects a conviction that NestAI is emerging as a foundational technology partner for mission-critical defense and security use cases across Europe. The sovereign fund points to NestAI’s demonstrated traction with organizations facing increasingly complex operational demands and views the company as an “outlier potential” candidate under its updated strategy. Combining NestAI’s technical depth and focused mission with Nokia’s scale and connectivity leadership, Tesi expects both strong strategic impact and solid long-term return potential from its investment.
NestAI’s €100 million raise and strategic alliance with Nokia mark a significant step in the evolution of Europe’s defense-focused AI ecosystem. The partnership blends NestAI’s physical AI platforms with Nokia’s secure, AI-native connectivity to advance new capabilities for unmanned systems, C2 solutions, and critical infrastructure protection. With Tesi’s backing and a clear mandate to safeguard European resilience and sovereignty, NestAI is positioned to play a central role in shaping the future of AI-powered defense technologies.