Finnish startup NestAI has successfully closed a €100 million (approximately $115 million) funding round, co-led by Finland's sovereign fund, Tesi, and hardware giant Nokia. This significant investment is earmarked for the development of advanced AI products tailored for unmanned vehicles, autonomous operations, and sophisticated command and control platforms.

Further solidifying its ambitions, NestAI has also forged a strategic partnership with Nokia. This collaboration will focus on building AI solutions specifically for defense applications and advancing the field of "physical AI." Physical AI, as defined by NestAI, involves leveraging large language models and related technologies to power robotics and other real-world applications, bridging the gap between digital intelligence and physical interaction.

Building Europe's Leading Physical AI Lab

The substantial funding will enable NestAI to establish what it aims to be "Europe's leading physical AI lab," as announced by co-founder Peter Sarlin at the Slush 2025 technology conference in Helsinki. The company's focus on physical AI aligns with a burgeoning research area for both established tech giants and innovative startups.

NestAI's successful funding round underscores the growing opportunity for European companies to develop homegrown technological solutions, particularly in response to the continent's evolving defense needs, intensified by the prolonged conflict in Ukraine. Reflecting this strategic direction, NestAI previously announced its commitment to support the Finnish Defense Forces in their adoption of AI technologies.

“In line with PostScriptum’s mission, NestAI has from the start set out to become Europe’s leading physical AI lab to drive technological sovereignty,” Sarlin told TechCrunch. “This partnership also marks an important step in securing Europe’s defense capabilities and sovereignty.”

Leadership and Strategic Vision

This emphasis on technological sovereignty likely explains NestAI's prior stealth mode. The venture is now building in public, backed by Peter Sarlin, who has been funding the startup for several months through his family office, PostScriptum.

Sarlin, a prominent figure in the AI landscape, previously sold his AI startup Silo AI to AMD for $665 million last year. Beyond his entrepreneurial ventures, he is also active as a philanthropist and investor, supporting other startups like Legora and Lovable. While he continues his day job at AMD, Sarlin will serve as NestAI's chairman, not its CEO, a position that remains open.

Despite the absence of a CEO, NestAI has rapidly assembled a formidable team. Its growing staff includes talent with extensive experience in AI research and hardware projects, many of whom have backgrounds overlapping with defense applications. Notably, a significant number of employees previously worked for Intel, alongside others from renowned companies such as Kongsberg, Palantir, and Saab.