Nokia and NestAI have announced a strategic partnership and a €100 million investment to advance AI-driven defence technologies, marking a significant step in Europe’s defence and technological sovereignty. This collaboration underscores a growing trend of integrating cutting-edge AI capabilities into military and national security frameworks.
At the heart of this initiative is Nokia’s newly established unit, Nokia Defence, which aims to expand the company’s footprint in the defence sector. “This investment reflects our shared ambition to shape the future of AI-driven solutions,” said Justin Hotard, CEO of Nokia. “By combining Nokia’s expertise in secure advanced connectivity with NestAI’s pioneering platforms, we are accelerating the development of next-generation capabilities for defence and national safety.”
NestAI, led by Peter Sarlin, a professor at Aalto University and former CEO of Silo AI, was founded with the mission to scale physical AI solutions for defence and to safeguard Europe’s technological independence. Sarlin’s previous venture, Silo AI, was acquired by AMD for €615 million in 2024, highlighting the strategic importance of AI in the defence sector. “NestAI was founded to deliver mission-critical physical AI capabilities at scale and to safeguard Europe’s sovereignty,” Sarlin stated in a joint press release.
The partnership will focus on developing AI-native capabilities for modern defence environments, including secure sensing networks, autonomous platforms, and control systems tailored for military and national security applications. The €100 million investment, supported by Nokia and Finnish investment company Tesi, will fund the development of these advanced technologies and support NestAI’s growth in Europe’s defence technology sector.
Nokia Defence is poised to lead product development in critical areas such as secure battlefield communications, AI-enhanced sensing, and real-time data systems for military use. This initiative aligns with the broader industry trend of integrating AI into defence technologies, enhancing operational efficiency and strategic capabilities.
The announcement follows Nvidia’s $1 billion investment in Nokia in October, which acquired a 2.9 percent stake to develop AI-native networks. Nokia will integrate Nvidia’s AI-RAN technology into mobile and fixed networks, supporting 5G-Advanced and 6G. The companies aim to move AI processing from data centres to the network edge, a move that could revolutionise data handling and network security.
In response to the announcement, Nokia’s shares rose by 1.74 percent in pre-market trading on the New York Stock Exchange, reaching $6.14. This positive market reaction reflects investor confidence in the strategic direction and potential of the Nokia-NestAI partnership.
As Europe seeks to strengthen its defence capabilities and technological sovereignty, the collaboration between Nokia and NestAI represents a pivotal development. By leveraging AI and advanced connectivity, the partnership aims to set new standards in defence technology, ensuring Europe remains at the forefront of innovation and security.