Nokia Teams Up With Nvidia In EU-Funded Drone Project

The three-year project is expected to generate $102.7 million in revenue by 2035, and aims to yield 50 products, 15 patents, and over $45.6 million in additional investment.

A group of more than 42 companies and institutions, led by Nokia (NOK) and including U.S. chipmaker Nvidia (NVDA), has launched a European Union-funded drone initiative aimed at defending the continent’s critical infrastructure.

The project, called PROACTIF, will be spearheaded by Nokia under the EU’s Chips Joint Undertaking program. Its goal is to enhance the resilience of Europe’s electronic and communication systems (ECS) and bolster the region’s strategic autonomy in drone and robotics technologies. 

The effort brings together startups, universities, and defense contractors to develop new capabilities such as radar and laser sensors for drones and unmanned vehicles, including Italy-based Leonardo S.p.A., Finnish Saab, and Spanish aerospace and defense player Safran.

“Safeguarding critical infrastructure has not always been a priority,” said Thomas Eder, head of embedded wireless solutions at Nokia, in an interview with Reuters. He noted that a similar initiative was rejected for EU funding just a few years ago.

The project, while civil in nature, targets high-value energy, transportation, and communication assets, including railways, ports, and power grids. 

When asked if it could evolve into a dual-use program with defense applications, Eder replied, “I think it is highly possible.”

The three-year project is expected to generate €90 million ($102.7 million) in revenue by 2035 and aims to yield 50 products, 15 patents, and over €40 ($45.6 million) million in additional investment. 

According to Reuters, Nokia said it could not confirm the full funding amount but noted that the Chips Joint Undertaking allows contributions from non-EU countries, including Israel.

The drone initiative aligns with Nokia’s strategic shift under its new CEO, who has identified defense, data centers, and AI as focus areas for growth.

Nokia’s U.S.-listed stock has gained 21% this year and 38% over the last 12 months. Meanwhile, Nvidia’s stock has gained nearly 4% this year and 22% over the last 12 months. 

(Exchange rate: €1 = $1.14)<

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