European defence artificial intelligence laboratory NestAI is opening a research and development centre in Latvia to develop AI-based defence solutions together with armed forces and the defence industry operating on NATO’s eastern flank. The centre marks the next step in expanding NestAI’s presence in the Nordic and Baltic region, following the company’s announcement in August that it was launching operations in Sweden.
As part of strengthening its presence in Latvia, the company is building a team of 30 scientists and engineers for the centre and aims to invest €10 million in its development over the coming years. The announcement coincides with NestAI’s participation in the Riga Conference on 11 September 2026, where the company’s founder and Chairman, Peter Sarlin, will meet representatives of the Latvian government and academia and participate in a discussion on the use of artificial intelligence in European defence.
“NestAI’s decision to establish a research and development centre in Latvia represents a strategic investment in a sector with strong growth potential. The planned investment of €10 million and the creation of 30 new jobs for scientists and engineers will bring together expertise, technology and international cooperation in Latvia. Attracting projects of this kind demonstrates our ability to compete at the European level for high-value-added investment,” emphasises Minister for Economics Viktors Valainis.
NestAI is developing NestOS, an adaptive operating system for modern battlefield operations. The open, modular and interoperable platform provides adaptive intelligence capabilities for unmanned and command-and-control systems, delivering AI solutions that continuously learn from operational data and adapt to changing conditions.
In June 2026, NestAI signed a memorandum of understanding with the Finnish Ministry of Defence and the Estonian Defence Forces to promote the joint cross-border development of AI solutions. The agreement established a framework for cooperation, providing a structured pathway for other allies to participate in the future.
Within NATO, Latvia has established one of Europe’s most active testing environments for artificial intelligence and autonomous systems, while the country’s defence spending is approaching 5% of gross domestic product in 2026. Establishing the research and development centre in Latvia will bring NestAI closer to the Baltic region’s armed forces and institutions with which the company cooperates, allowing the region’s operational priorities to shape the centre’s work from the outset.
“Technological superiority and the ability to adapt rapidly are decisive in modern warfare. NestAI’s decision to establish a research and development centre in Latvia will strengthen our defence technology ecosystem and enable us to develop and test, here in Latvia, solutions required on the modern battlefield. The arrival of international companies of this kind strengthens both the expertise of our industry and our national defence capabilities,” says Minister of Defence Raivis Melnis.
The research and development centre will focus on adaptive intelligence solutions for unmanned and command-and-control systems designed to operate in contested environments and under disrupted communications, while retaining the ability to adapt to such conditions.
“Latvia’s defence ecosystem is developing at a pace determined by operational needs. The armed forces and institutions building these capabilities are asking the right questions: what artificial intelligence must be capable of doing under contested conditions, how it must continue adapting as those conditions change, and how it can operate across the systems of different allies. Establishing a research and development centre in Latvia means that these questions will shape our work from the outset and translate directly into practical capabilities for the armed forces we serve,” says NestAI founder and Chairman Peter Sarlin.
The project was developed with the support of the Investment and Development Agency of Latvia (LIAA) and the Embassy of Latvia in Finland.
“An investor chooses Latvia when it sees not only a strong idea, but also the people, expertise and partners needed to implement it. Together with the Embassy of Latvia in Finland, LIAA helped NestAI establish connections with Latvian institutions and the country’s defence technology ecosystem. The priority now is to turn this investment into broader opportunities for Latvian companies and researchers through joint projects, new expertise and inclusion in international supply chains,” says LIAA Director Ieva Jāgere.
