NestAI Raises €100M to Build Europe’s Leading Physical AI Lab for Defense and Autonomous Systems

NestAI, a Finland-based startup developing AI for real-world autonomous operations and defense systems, has closed a €100 million ($115 million) funding round led by Tesi, Finland’s sovereign wealth fund, and Nokia. The financing supports the creation of advanced AI solutions for unmanned vehicles, command-and-control platforms, and robotics deployed in national security and industrial environments.

The company also announced a strategic partnership with Nokia to co-develop physical AI technologies — applying large language models and autonomous decision systems beyond software into hardware and field-ready robotics. The initiative aligns with Europe’s growing focus on defense innovation and technology sovereignty amid evolving geopolitical threats.

Co-founded by Peter Sarlin, NestAI is emerging from stealth with a team experienced in AI research and defense-grade hardware engineering from organizations including Intel, Kongsberg, Palantir, and Saab. The new capital will accelerate the establishment of a European physical AI lab and expand support for programs such as the Finnish Defence Forces’ AI modernization efforts.

James Dargan

James Dargan is a writer and researcher at The AI Insider. His focus is on the AI startup ecosystem and he writes articles on the space that have a tone accessible to the average reader.

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