Technical

Srinivasa Reddy Kandi: NestAI Raises €100M to Build Europe’s Leading Physical AI Lab

November, 20, 2025-08:03

Share: Facebook | Twitter | Whatsapp | Linkedin | Visits: 37439 | :2821

---

NestAI Raises €100M to Build Europe’s Leading Physical AI Lab:

Finnish startup NestAI has secured €100 million (about $115 million) in a funding round led by Finland’s sovereign wealth fund, Tesi, and Nokia. The investment will support the development of AI technologies for unmanned vehicles, autonomous operations, and command-and-control platforms.

NestAI has also entered into a partnership with Nokia to create AI solutions for defense systems and advance its work in “physical AI” — applying large language models and related technologies to robotics and other real-world applications.

Co-founder Peter Sarlin announced at the Slush 2025 conference in Helsinki that the funding will help NestAI build “Europe’s leading physical AI lab.”

Physical AI has been gaining momentum across Big Tech and emerging startups. NestAI’s raise highlights the growing opportunity for European companies to develop sovereign AI solutions, particularly as the region’s needs increasingly focus on defense due to the ongoing Ukraine–Russia conflict. Just last month, the company revealed plans to support the Finnish Defense Forces in adopting AI.

This emphasis on sovereignty explains why NestAI has operated in stealth mode until now. With backing from Sarlin’s family office, PostScriptum, the company is beginning to build more publicly.

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

Sarlin, who sold his previous AI startup Silo AI to AMD for $665 million last year, has since been active as an investor and philanthropist, supporting ventures such as Legora and Lovable. While he is helping build NestAI, he remains employed at AMD and will serve as the company’s chairman, not its CEO.

Author: Kandi Srinivasa Reddy, Srinivasa Reddy Kandi, #KandiSrinivasaReddy, #SrinivasaReddyKandi