Finland's NestAI Lands €100 Million from Nokia and Tesi to Power AI-Native Defense
Helsinki-based artificial intelligence company NestAI has secured €100 million in funding from Finnish technology giant Nokia and state-owned investment firm Tesi, as it looks to expand its AI-powered defense and national security solutions.
The investment underscores the growing importance of AI in the defense sector, as militaries worldwide seek to leverage advanced analytics and autonomous systems to gain strategic advantages. NestAI, founded in 2020, has developed AI models specifically tailored for defense and intelligence applications, including threat detection, mission planning, and autonomous decision-making.
"This funding will allow us to accelerate the development and deployment of our AI-native defense technologies," said NestAI CEO Sanna Mäkinen. "By partnering with industry leaders like Nokia and Tesi, we can further strengthen Finland's position as a hub for defense innovation."
According to sources familiar with the deal, the funding round was oversubscribed, with several international defense contractors and venture capital firms also expressing interest. Nokia's involvement is particularly notable, as the company has been pivoting its business towards emerging technologies like 5G, IoT, and now AI-enabled defense systems.
"NestAI's cutting-edge AI capabilities align perfectly with Nokia's vision for the future of defense and national security," said Nokia's Chief Strategy Officer, Pekka Lundmark. "We're excited to support their growth and explore opportunities to integrate their solutions with our own technology platforms."
The investment comes amid growing global demand for AI-powered defense solutions. Analysts estimate the military AI market will reach $18.8 billion by 2025, up from $6.9 billion in 2020, driven by the need for enhanced situational awareness, autonomous systems, and data-driven decision making.
Finland, in particular, has been positioning itself as a leader in defense innovation, with the government prioritizing investments in emerging technologies. NestAI's success is seen as a validation of the country's strategy to cultivate a thriving AI ecosystem with applications across various industries, including national security.
"This investment in NestAI reinforces Finland's commitment to developing cutting-edge defense capabilities," said Tesi CEO Juha Sarsama. "As a state-owned fund, we're proud to support homegrown tech companies that are driving innovation and creating high-value jobs in this critical sector."
With the new capital, NestAI plans to expand its team of AI and defense experts, accelerate product development, and pursue international growth opportunities. The company is already working with several European militaries and intelligence agencies, and the additional funding is expected to bolster its competitiveness in a rapidly evolving global market.
NestAI's €100M funding round from Nokia and Tesi highlights the growing importance of AI in the defense sector globally. As militaries seek to leverage advanced analytics and autonomous systems, NestAI is well-positioned to capitalize on this trend with its specialized AI models for defense applications like threat detection and mission planning.