Finnish startup NestAI is moving out of stealth with a large new funding round and a defense-focused partnership with Nokia. The company has raised €100 million (about $115 million) to build AI products for unmanned vehicles, autonomous operations, and command and control platforms.
The round was led by Finland's sovereign fund, Tesi, and hardware giant Nokia. NestAI is also working with Nokia on AI products for defense applications and on developing physical AI, a field that applies large language models and related technology to robotics and other real-world systems.
A Major Bet on Physical AI
NestAI's new funding is aimed at building what co-founder Peter Sarlin described at the Slush 2025 technology conference in Helsinki as Europe’s leading physical AI lab. The phrase matters because NestAI is not positioning itself as a general-purpose software startup. Its focus is on AI that can be used in operational systems tied to real-world movement, sensing, and decision-making.
The source article describes physical AI as the use of large language models and related technology for robotics and other real-world applications. In NestAI's case, that emphasis connects directly to defense use cases. The company is targeting products for unmanned vehicles, autonomous operations, and command and control platforms.
Those areas share a common challenge: AI must move beyond text and screen-based workflows into environments where systems interact with physical conditions. For a defense customer, that can mean tools that support autonomous operations or help coordinate complex activity through command and control platforms.
Why Nokia Matters
Nokia is both an investor in the funding round and a partner in NestAI's product plans. That dual role gives the startup a major European hardware and technology company alongside it as it develops defense-focused AI products.
The partnership is centered on building AI products for defense applications and developing physical AI. The source article does not describe specific products, timelines, or customers from the Nokia partnership, but it does make clear that the work is tied to real-world AI systems rather than purely digital assistants or consumer tools.
For NestAI, the Nokia relationship also reinforces the company's European positioning. The funding round is led by Tesi and Nokia, and the company's stated ambition is framed around Europe. Sarlin told TechCrunch that NestAI set out from the start to become Europe’s leading physical AI lab and to drive technological sovereignty.
Defense and Sovereignty Shape the Strategy
NestAI is emerging at a time when physical AI has become a growing research field for Big Tech and startups. According to the source article, the funding round shows that there is room for European companies to develop homegrown solutions for the continent's needs.
Those needs have leaned toward defense applications because of the prolonged Ukraine-Russia war. NestAI's public direction fits that context. The startup announced it would support the Finnish Defence Forces in adopting AI, and the new funding gives it more resources to build around defense applications.
The company has been in stealth so far. The source article suggests that its focus on sovereignty may help explain that earlier low profile. Now, NestAI is building in public with support from Sarlin and his family office, PostScriptum, which had been funding the venture for the past few months.
Sarlin linked the startup's mission directly to sovereignty in his comments to TechCrunch. He said the Nokia partnership marks an important step in securing Europe’s defense capabilities and sovereignty. That framing makes NestAI part of a broader European effort to control more of the technology stack behind sensitive AI systems.
Peter Sarlin's Role and the Team Behind NestAI
NestAI is closely associated with Peter Sarlin, who previously sold AI startup Silo AI to AMD for $665 million last year. Since then, he has been active as a philanthropist and investor, backing startups such as Legora and Lovable.
Even as he builds NestAI, Sarlin's day job remains at AMD. At NestAI, he will act as chairman, not CEO. The company does not have a CEO yet, according to the source article.
The startup is already building a team with experience relevant to its AI and defense ambitions. A significant number of staff formerly worked for Intel, while others previously worked at Kongsberg, Palantir, and Saab.
That mix is notable because NestAI's stated areas of work sit at the intersection of AI research, hardware projects, and defense applications. The source article says the team has attracted talent with experience in AI research and hardware projects that overlap with defense.
What to Watch Next
The clearest takeaway is that NestAI is not simply raising money to explore AI in the abstract. Its funding, investors, partnership, staffing, and public statements all point toward a defined market: physical AI for defense applications in Europe.
Several key facts now define the company’s position:
- It has raised €100 million (about $115 million).
- The funding round was led by Tesi and Nokia.
- It has partnered with Nokia to build AI products for defense applications.
- Its target areas include unmanned vehicles, autonomous operations, and command and control platforms.
- It aims to build Europe’s leading physical AI lab.
What remains open is who will lead the company as CEO, how quickly its products will move from lab work to deployment, and how its partnership with Nokia will turn into specific defense AI systems. The source article does not answer those questions, but it shows that NestAI is now a visible European player in one of AI's most strategically sensitive areas.