Nokia and NestAI advance physical AI with €100M partnership
Nokia and Finnish physical AI specialist NestAI are teaming up to accelerate AI-powered defense technologies, backed by a fresh €100 million investment from Nokia and Finland’s sovereign fund, Tesi. The deal positions both companies to push deeper into unmanned systems, autonomous operations, and data-centric command and control platforms.
For eeNews Europe readers, the move highlights growing European momentum in AI-native defense technologies and the strategic role of secure connectivity — areas increasingly relevant for telecom, semiconductor, and embedded-systems suppliers.
A push for AI-native defense capabilities
As defense organizations shift toward AI-driven and dual-use technologies, Nokia has created a dedicated defense incubation unit operating across the U.S., Finland, and key NATO and Five Eyes markets. NestAI, meanwhile, is one of Europe’s fastest-growing physical AI labs, developing platforms for logistics, inspection, surveillance, security, and defense applications.
Justin Hotard, President and CEO at Nokia, said: “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.”
The joint effort will integrate Nokia’s secure connectivity, sensing, and multimedia systems with NestAI’s unmanned systems and next-gen AI platforms. The companies say the partnership will help accelerate AI adoption in unmanned vehicles, modern C2 systems, and advanced information management — areas where forward-deployed engineering and R&D are critical.
Strengthening Europe’s technological sovereignty
For NestAI, the partnership is as much about Europe’s long-term resilience as it is about technology development. Peter Sarlin, Chairman of NestAI and PostScriptum, said: “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.”
Tesi echoed that sentiment, emphasizing the strategic relevance of physical AI for Europe’s defense sector. Juha Lehtola, Head of VC & Growth investments at Tesi, noted: “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.”
With AI becoming a core pillar of defense modernization, the Nokia–NestAI alliance marks a significant step in Europe’s efforts to secure an edge in physical AI and secure communications.
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