Nokia Oyj (NOK) is making a serious push into defense-focused artificial intelligence. The Finnish telecommunications giant just announced a strategic alliance with NestAI, backed by a combined €100 million ($115.3 million) investment aimed at building next-generation AI platforms for defense and critical infrastructure across Europe.
The partnership, announced from Nokia's home base in Espoo, Finland, brings together two companies with complementary strengths. NestAI has been rapidly expanding throughout Europe with a focus on what's called "physical AI"—think autonomous operations, logistics, surveillance, and defense applications that operate in the real world, not just in data centers. Nokia brings its expertise in secure connectivity, sensing technology, and multimedia capabilities to the table.
The €100 million backing includes investment from Nokia and Tesi, Finland's sovereign investor (formally known as Finnish Industry Investment Ltd). The goal is to accelerate development of AI-native platforms specifically designed for mission-critical environments where failure isn't an option.
This move fits into Nokia's broader defense strategy. The company recently established a dedicated defense incubation unit to deepen collaborations with partners across the United States, Finland, and allied nations. The idea is to integrate secure communications and sensing technologies with NestAI's unmanned systems and AI platforms, creating solutions that address evolving defense and security needs.
Justin Hotard, Nokia's President and CEO, said the collaboration reflects a shared commitment "to shape the future of AI-driven solutions" for national safety and infrastructure.
The timing is noteworthy. The defense and connectivity sectors are seeing significant investment flows as AI integration expands across global military and security operations. Nokia has also been in the news recently for restructuring efforts tied to profitability targets, which have caught investor attention.
Price Action: NOK shares traded 1.33% higher at $6.11 in premarket activity on Thursday.
