Finnish startup NestAI has successfully secured €100 million (approximately $115 million) in a funding round spearheaded by the nation’s sovereign fund, Tesi, alongside tech giant Nokia. This significant financial boost is intended for the development of advanced AI solutions tailored for unmanned vehicles, autonomous operations, and command-and-control systems.
In conjunction with the funding, NestAI has formed a strategic alliance with Nokia to create innovative AI products specifically for defense applications while also pursuing the concept of “physical AI.” This emerging field integrates large language models with robotics and other practical applications, enhancing operational capabilities in real-world environments.
Co-founder Peter Sarlin announced plans to establish “Europe’s leading physical AI lab” during his presentation at the Slush 2025 technology conference in Helsinki. He noted that this investment will enable NestAI to craft homegrown solutions for Europe’s pressing needs, particularly in defense, which has become increasingly relevant amid the ongoing Ukraine-Russia conflict. Notably, the company has recently committed to supporting the Finnish Defense Forces in their AI initiatives.
NestAI’s discreet operations until now can be attributed to its focus on maintaining sovereignty in defense capabilities. However, public initiatives are now underway thanks to Sarlin, who initially funded the venture through his family office, PostScriptum, after selling his previous AI firm, Silo AI, to AMD for $665 million last year. Although Sarlin is taking on the role of chairman, he continues his primary role at AMD, and the search for a CEO is ongoing.
The growing team at NestAI boasts a wealth of experience in AI research and hardware projects linked to defense, with many staff members having previously worked for notable firms such as Intel, Kongsberg, Palantir, and Saab. This recruitment strategy underscores NestAI’s ambition to drive innovation in defense technology while aligning with Europe’s strategic interests.
