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

Finnish startup NestAI has raised €100 million (about $115 million) in a funding round led by Finland’s sovereign fund, Tesi, and hardware giant Nokia, to develop AI products for uncrewed vehicles, autonomous operations, and command-and-control platforms.

NestAI has also formed a partnership with Nokia to build AI technologies for defence use and advance “physical AI” — a field focused on applying large language models and related systems to robotics and real-world applications.

The capital will support NestAI’s goal of creating “Europe’s leading physical AI lab,” co-founder Peter Sarlin announced at the Slush 2025 conference in Helsinki.

Physical AI has become an expanding area of research across both Big Tech and startups. NestAI’s funding shows growing demand for European-built AI systems tailored to the region’s specific needs — particularly in defence — as the continent continues to respond to the prolonged Ukraine-Russia war. Just last month, the company revealed it would support the Finnish Defence Forces in adopting AI technologies.

This emphasis on sovereignty helps explain why NestAI remained in stealth until now. The company is beginning to build more publicly, backed by Sarlin, who has been funding operations for several months through his family office, PostScriptum.

“In line with PostScriptum’s mission, NestAI has from the start set out to become Europe’s leading physical AI lab to drive technological sovereignty,” Sarlin told TechCrunch. “This partnership also marks an important step in securing Europe’s defense capabilities and sovereignty.”

After selling his previous AI startup, Silo AI, to AMD for $665 million, Sarlin has been active as an investor and philanthropist, supporting companies like Legora and Lovable. While he helps launch NestAI, he will continue in his role at AMD and serve as the startup’s chairman, not its CEO.

NestAI does not yet have a CEO, but the company has already attracted engineering and research talent with deep experience in AI and defence-adjacent hardware development. Many employees previously worked at Intel, while others come from organisations such as Kongsberg, Palantir, and Saab.