Nokia and NestAI have formed a strategic partnership to advance next-generation physical AI systems for defense, security, and critical infrastructure. As part of the collaboration, Nokia and the Finnish sovereign fund Tesi have invested €100 million in NestAI, one of Europe’s fastest-growing physical AI labs, to support the development and scaling of autonomous systems and AI-driven command-and-control technologies.
The two organizations will combine Nokia’s capabilities in secure connectivity, AI-native networking, sensing, and multimedia with NestAI’s platforms for unmanned vehicles, autonomous operations, and next-generation data-centric C2 software. The partnership is positioned to strengthen Europe’s technological resilience and expand the adoption of AI-native dual-use systems across logistics, surveillance, inspection, security, and defense environments.
Nokia has increased its focus on modern defense technology and recently launched a dedicated defense incubation unit to deepen collaboration with partners across Finland, the United States, NATO members, and allied nations. NestAI, founded to build mission-critical physical AI systems at scale, will leverage the new capital and partnership to accelerate engineering, research collaboration, and product deployment for European defense forces and other organizations seeking operational advantage in fast-evolving environments.
Tesi’s participation brings long-term institutional support for strategic sectors, with the fund highlighting both the technical depth of NestAI’s platform and the commercial momentum the company has already demonstrated across Europe.
KEY QUOTES
“At Nokia, we believe that the future of defense and critical infrastructure will be defined by secure, AI-native solutions. Our strategic partnership with NestAI is a testament to our commitment to innovation with partners. By combining Nokia’s expertise in secure advanced connectivity with NestAI’s pioneering platforms, we are accelerating the development of next-generation capabilities for defense and national safety. This investment reflects our shared ambition to shape the future of AI-driven solutions.”
Justin Hotard, President and CEO at Nokia
“Strategic partnerships are imperative to strengthen Europe’s security and resilience. In line with PostScriptum’s mission, NestAI was founded to deliver mission-critical physical AI capabilities at scale and to safeguard Europe’s sovereignty. Nokia’s role as a cornerstone of leading global technology and innovation enables us to accelerate our impact and deepen the operational advantage NestAI brings to European defense. The Finnish sovereign fund Tesi brings institutional stability and long-term perspective to build resilient technological leadership. This partnership lays the foundation for a future in which Europe sustains a technological edge, and allows NestAI to deliver at scale.”
Peter Sarlin, Chairman of the Board at PostScriptum and NestAI, Co-founder & CEO at AMD Silo AI
“We see NestAI emerging as a foundational technology partner for mission-critical defence and security environments across Europe. Our investment reflects the value it is already demonstrating for organisations facing increasingly complex and evolving operational demands. This aligns with Tesi’s renewed strategy to back Finnish companies with outlier potential in strategically important sectors. NestAI combines strong technical depth with a focused, purposeful approach. It is the demonstrated progress and the direction of their solutions combined with Nokia’s global lead in secure, advanced connectivity that gives us confidence in their long-term significance and return potential for our investment.”
Juha Lehtola, Head of VC & Growth Investments at Tesi
