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AIModelKit > News > Finland’s NestAI Secures €100M Funding and Collaborates with Nokia to Develop AI Solutions for Defense Applications
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Finland’s NestAI Secures €100M Funding and Collaborates with Nokia to Develop AI Solutions for Defense Applications

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Last updated: November 23, 2025 4:26 am
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Finland’s NestAI Secures €100M Funding and Collaborates with Nokia to Develop AI Solutions for Defense Applications
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NestAI: Pioneering Physical AI for Unmanned Vehicles and Defense

Finnish startup NestAI has made waves in the tech landscape by securing €100 million (approximately $115 million) in a remarkable funding round. This significant investment was spearheaded by Finland’s sovereign fund, Tesi, alongside tech powerhouse Nokia. The ambitious goal? To develop cutting-edge AI products tailored for unmanned vehicles, autonomous operations, and command and control platforms.

Contents
  • NestAI: Pioneering Physical AI for Unmanned Vehicles and Defense
    • A Partnership with Nokia: Elevating Defense Applications
    • Building Europe’s Leading Physical AI Lab
    • Focus on Sovereignty in AI Development
    • A Vision for Securing Europe’s Defense Capabilities
    • From One Success to Another: Sarlin’s Journey
    • Attracting Top Talent in AI and Defense
    • Looking Ahead: The Future of Physical AI

A Partnership with Nokia: Elevating Defense Applications

In an exciting twist, NestAI has established a strategic partnership with Nokia to explore the realm of defense applications through the development of innovative AI products. This collaboration aims to harness the power of “physical AI”—a groundbreaking focus that integrates large language models and associated technologies into practical robotics and real-world applications. The alliance hints at a transformative shift in how defense technologies can leverage artificial intelligence.

Building Europe’s Leading Physical AI Lab

At the forefront of this venture is co-founder Peter Sarlin, who articulated ambitions at the Slush 2025 technology conference in Helsinki to establish “Europe’s leading physical AI lab.” This funding, Sarlin believes, will empower NestAI to spearhead research and product development at a time when the relevance of AI in defense technology has never been clearer, particularly given the ongoing Ukraine-Russia crisis. This alarming conflict has elevated the importance of national defense and the innovative solutions that can arise from it.

Focus on Sovereignty in AI Development

NestAI’s strategic direction emphasizes technological sovereignty—the concept of developing homegrown solutions tailored to European needs. For much of its early development, NestAI operated in stealth mode, reflecting a deliberate approach to build a secure and innovative environment. Now, as it transitions to a public-facing venture, Sarlin’s funding efforts through his family office, PostScriptum, underscore a commitment to driving technological independence in Europe.

A Vision for Securing Europe’s Defense Capabilities

Sarlin has stated that being aligned with the mission of PostScriptum enhances the long-term vision of NestAI. The startup isn’t merely looking to capitalize on technological advancements; it’s also focused on ensuring that Europe’s defense capabilities are robust and self-sufficient. This initiative marks a significant step towards fortifying Europe’s position in the global defense landscape, especially in a time when external threats are a constant concern.

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From One Success to Another: Sarlin’s Journey

After successfully selling his previous AI startup, Silo AI, to AMD for a remarkable $665 million last year, Peter Sarlin has shifted his focus to nurturing fresh talent and fostering innovation. Though his daily obligations are centered at AMD, Sarlin plays a pivotal role as NestAI’s chairman, steering the vision of the startup without taking on the CEO title. His dual engagement highlights his dedication to both corporate success and contributions to the startup ecosystem.

Attracting Top Talent in AI and Defense

NestAI is not only about innovative ideas; it’s about the right people to execute those ideas. The growing team comprises individuals with extensive experience in AI research and hardware projects, particularly those bridging the gap with defense applications. A remarkable proportion of its talent previously honed their skills at major players like Intel, Kongsberg, Palantir, and Saab, bringing a wealth of knowledge and expertise that positions NestAI as a formidable contender in the tech space.

Looking Ahead: The Future of Physical AI

As NestAI embarks on its ambitious journey, its commitment to innovation stands out. With its strategic partnerships, investment backing, and focus on building a skilled team, the startup is poised to reshape the landscape of physical AI within Europe. As challenges in defense and security evolve, so too does the need for groundbreaking solutions, and NestAI is ready to meet this critical demand head-on.

In a world where AI continues to redefine industries, NestAI’s ongoing developments promise to keep Europe at the forefront of technological advancements in defense and beyond. Stay tuned as this dynamic Finnish startup shapes the future of AI for unmanned vehicles and autonomous operations.

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