Nokia and Tesi Invest in NestAI to Accelerate Development of AI-Driven Capabilities for Unmanned Systems and Critical Infrastructure

Nokia and Tesi Invest in NestAI to Accelerate Development of AI-Driven Capabilities for Unmanned Systems and Critical Infrastructure

(IN BRIEF) Nokia and NestAI have entered into a strategic partnership to develop AI-native defense and critical infrastructure technologies, supported by a combined €100 million investment from Nokia and Tesi. NestAI, one of Europe’s fastest-growing physical AI labs, focuses on next-generation AI for unmanned vehicles, autonomous operations, and advanced command-and-control systems. Nokia’s new defense incubation unit and its leadership in secure connectivity will complement NestAI’s platforms to accelerate innovation for military and dual-use applications. Leaders from Nokia, NestAI, and Tesi emphasized the importance of strengthening European technological sovereignty, expanding mission-critical capabilities, and supporting long-term resilience in defense and national security environments. The collaboration aims to fast-track AI deployment across unmanned systems, data-centric C2, and modern knowledge-management architectures.

(PRESS RELEASE) ESPOO, 20-Nov-2025 — /EuropaWire/ — Nokia has entered into a strategic partnership with NestAI to accelerate the development of AI-powered defense and critical infrastructure technologies. Alongside the collaboration, both Nokia and the Finnish sovereign investment fund Tesi (Finnish Industry Investment Ltd) have made significant investments in NestAI, with a combined value of €100 million. The funding will support the rapid growth of one of Europe’s most dynamic physical AI labs, as NestAI advances next-generation capabilities for unmanned systems, autonomous operations, and data-centric command and control solutions across sectors such as logistics, security, inspection, surveillance, and defense.

As defense forces worldwide adopt AI-native, dual-use technologies, secure and advanced connectivity is becoming an essential strategic asset. To meet this demand, Nokia has established a dedicated defense incubation business unit focused on deeper co-innovation with partners in the U.S., Finland, NATO member states, and Five Eyes countries.

Justin Hotard, President and CEO of Nokia, emphasized the strategic significance of the partnership:
“At Nokia, we believe that the future of defense and critical infrastructure will be defined by secure, AI-native solutions. Our partnership with NestAI reflects our commitment to innovating alongside strong collaborators. By combining Nokia’s expertise in secure, advanced connectivity with NestAI’s pioneering platforms, we are accelerating the development of next-generation capabilities for defense and national safety. This investment reflects our shared ambition to shape the future of AI-driven solutions.”

Peter Sarlin, Chairman of NestAI and of PostScriptum, highlighted the geopolitical importance of strengthening Europe’s technological independence. He noted that NestAI was created to deliver mission-critical physical AI at scale and reinforce European sovereignty in next-generation defense technologies. Sarlin further emphasized that Nokia’s global role in secure communications will help expand NestAI’s operational impact, while Tesi provides long-term institutional strength to build resilient European technology leadership.

Through this strategic partnership, Nokia and NestAI will jointly develop AI-native defense solutions by integrating Nokia’s capabilities in secure connectivity, sensing technologies, and multimedia with NestAI’s platforms for unmanned systems, C2 frameworks, and advanced AI models. Their focus will include accelerating AI capabilities for autonomous operations, enhancing data-driven command and control, and strengthening modern information and knowledge-management systems. The collaboration also deepens engagement with European defense forces and other ecosystem partners.

Juha Lehtola, Head of VC & Growth Investments at Tesi, stated that NestAI is emerging as a foundational technology provider for mission-critical defense and security environments across Europe. He emphasized that Tesi’s investment aligns with its strategy to support Finnish companies with exceptional potential in strategically important sectors, adding that the combined strengths of NestAI and Nokia reinforce confidence in the long-term value and impact of the partnership.

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SOURCE: Nokia