Nestai Secures €100M Funding & Nokia Partnership for AI Defense

NestAI Secures €100 Million to Advance AI for Autonomous Systems

Finnish company NestAI has successfully completed a funding round, raising €100 million (approximately $115 million). The investment was spearheaded by Tesi, Finland's sovereign wealth fund, and technology leader Nokia.

Focus on Physical AI and Unmanned Technologies

The capital infusion will be utilized to develop AI products specifically designed for integration into unmanned vehicles, autonomous operations, and sophisticated command and control platforms. NestAI is also collaborating with Nokia on projects geared towards defense applications.

A core element of this development is “physical AI,” which leverages large language models and associated technologies to enhance robotics and other practical, real-world implementations.

Establishing a Leading Physical AI Lab in Europe

According to co-founder Peter Sarlin, the funding will facilitate the creation of “Europe’s leading physical AI lab.” This announcement was made during the Slush 2025 technology conference held in Helsinki.

Growing Interest in Physical AI and European Sovereignty

The field of physical AI is experiencing substantial growth, attracting attention from both established technology giants and emerging startups. NestAI’s funding demonstrates the potential for European companies to innovate and provide solutions tailored to the continent’s specific requirements.

The ongoing Ukraine-Russia conflict has particularly highlighted the need for advanced defense applications, influencing the direction of development.

Strategic Focus and Public Development

NestAI’s previous period of operating in stealth mode can be attributed to its emphasis on technological sovereignty. The company is now transitioning to a more public development approach.

This shift is supported by Peter Sarlin’s personal investment through his family office, PostScriptum, over the past several months.

Commitment to European Defense Capabilities

“NestAI, consistent with PostScriptum’s objectives, was founded with the intention of becoming Europe’s foremost physical AI lab, thereby bolstering technological independence,” Sarlin stated to TechCrunch. He further emphasized the importance of this partnership in strengthening Europe’s defense capabilities and overall sovereignty.

Founder's Background and Role

Following the sale of his previous AI venture, Silo AI, to AMD for $665 million last year, Peter Sarlin has been actively involved in philanthropic endeavors and venture capital investments, supporting companies such as Legora and Lovable.

While actively building NestAI, Sarlin maintains his position at AMD and will serve as the startup’s chairman, rather than its Chief Executive Officer.

Building a Talented Team

NestAI is currently assembling a team comprised of experts in AI research and hardware engineering, with a focus on areas relevant to defense technologies.

A considerable portion of the team has prior experience at Intel, complemented by individuals formerly employed by Kongsberg, Palantir, and Saab.