“Nokia and NestAI Partner for €100M Physical AI Advancement”

Nokia and Finnish physical AI specialist NestAI have joined forces in a strategic partnership aimed at advancing AI-powered defense technologies. This collaboration is supported by a substantial €100 million investment from Nokia and Finland’s sovereign fund, Tesi. The agreement positions both companies to delve deeper into unmanned systems, autonomous operations, and data-centric command and control platforms, signaling a significant development in the realm of defense technology.

For readers of eeNews Europe, this collaboration underscores the increasing momentum in AI-native defense technologies in Europe and underscores the critical role of secure connectivity. These areas are becoming more pertinent for telecom, semiconductor, and embedded-systems suppliers as the demand for advanced defense solutions continues to grow.

A Drive for AI-Native Defense Capabilities

As defense organizations pivot towards AI-driven and dual-use technologies, Nokia has established a dedicated defense incubation unit that operates in the U.S., Finland, and key NATO and Five Eyes markets. NestAI, on the other hand, is recognized as one of Europe’s fastest-growing physical AI labs, specializing in developing platforms for logistics, inspection, surveillance, security, and defense applications.

Justin Hotard, President and CEO at Nokia, emphasized the importance of secure, AI-native solutions for the future of defense and critical infrastructure. He highlighted the strategic partnership with NestAI as a testament to their commitment to innovation with partners. By combining Nokia’s expertise in secure advanced connectivity with NestAI’s pioneering platforms, the collaboration aims to accelerate the development of next-generation capabilities for defense and national safety.

The joint effort will see the integration of Nokia’s secure connectivity, sensing, and multimedia systems with NestAI’s unmanned systems and next-gen AI platforms. The companies anticipate that this partnership will facilitate the rapid adoption of AI in unmanned vehicles, modern C2 systems, and advanced information management, particularly in areas where forward-deployed engineering and R&D are crucial.

Enhancing Europe’s Technological Sovereignty

For NestAI, the partnership signifies a commitment to Europe’s long-term resilience and technological advancement. Peter Sarlin, Chairman of NestAI and PostScriptum, stressed the importance of strategic partnerships in bolstering Europe’s security and resilience. NestAI was founded with the mission to deliver mission-critical physical AI capabilities at scale and to safeguard Europe’s sovereignty.

Nokia’s role as a leading global technology and innovation provider enables NestAI to accelerate its impact and enhance the operational advantage it brings to European defense. The involvement of the Finnish sovereign fund Tesi provides institutional stability and a long-term perspective to foster resilient technological leadership. This partnership lays the groundwork for a future where Europe maintains a technological edge and enables NestAI to deliver at scale.

Tesi echoed these sentiments, underscoring the strategic importance of physical AI for Europe’s defense sector. Juha Lehtola, Head of VC & Growth investments at Tesi, highlighted NestAI’s emergence as a foundational technology partner for mission-critical defense and security environments across Europe. The investment reflects the value NestAI is already demonstrating for organizations facing complex and evolving operational demands.

The Nokia–NestAI alliance represents a significant stride in Europe’s quest to secure an advantage in physical AI and secure communications, as AI continues to play a pivotal role in defense modernization efforts.