Finnish startup NestAI has raised €100 million in a round led by Tesi and Nokia to accelerate development of physical AI for unmanned vehicles, autonomous operations and command platforms. The company is also partnering with Nokia to build AI systems for defense and real-world robotics, reflecting rising European interest in homegrown AI capabilities.
NestAI plans to use the financing to establish what it calls Europe’s leading physical AI lab, a move co-founder Peter Sarlin announced at the Slush 2025 conference in Helsinki. Physical AI has become a growing area of research across Big Tech and emerging startups, driven in part by demand for autonomous systems and Europe’s heightened focus on defense following the prolonged Ukraine-Russia conflict. NestAI recently began supporting the Finnish Defense Forces in adopting AI tools.
The company had operated in stealth, which Sarlin said aligned with its mission to bolster European technological sovereignty. NestAI’s team includes veterans from Intel, Kongsberg, Palantir and Saab, though the startup has not yet named a CEO. The funding round adds momentum to broader discussions of strategic AI investment in Europe, complementing industry analysis found in reporting on Musk’s xAI funding controversies.
