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Nokia partners with NestAI; NestAI raises €100 million for physical AI development

Nokia and the European AI lab NestAI have launched a strategic partnership to develop AI-based defence solutions. In connection with the collaboration, Nokia and the Finnish state fund Tesi are investing a total of EUR 100 million in NestAI.

NestAI focuses on next-generation AI for unmanned vehicles, autonomous operations, and command and control (C2) platforms across logistics, inspection, surveillance, security, and defence. Under the partnership, Nokia and NestAI will jointly develop defence-oriented AI solutions, combining Nokia’s expertise in secure, AI-native connectivity, sensing, and multimedia with NestAI’s platforms for unmanned systems and C2.

Nokia has launched a dedicated defence incubation business unit to accelerate co-innovation with partners in the US, Finland and other NATO and Five Eyes countries.

The collaboration also aims to strengthen engagement with European defence forces and other partners. Tesi describes NestAI as a company with strong technical capabilities and strategic importance, viewing the partnership as a way to support European technological leadership in critical security and defence sectors.


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