Minister of Defense Hanno Pevkur (Reform) and Gundbert Scherf, Co-founder and Co-CEO of European Defense-AI firm Helsing, signed the statement, which will allow Helsing to expand its operations within Estonia and the Baltic region,

The company will make investments of around €70 million, to include the establishment of new operational facilities.

Minister Pevkur said: "The new security environment in Europe requires a determined response from governments as well as the defense industry to be ahead of the curve in developing and fielding modern defensive capabilities."

"The decision by Helsing to relocate some of its operations to Estonia is also a sign of recognition for Estonia's dedication to strengthening national defense and providing a conducive environment for defense tech companies," the minister went on.

"Protecting NATO's eastern flank is a mission of critical importance, while the security challenges we face as an alliance are evolving rapidly," Pevkur continued, via a press release.

Dr Gundbert Scherf of Helsing said: "We are proud to partner with Estonia, a nation which has consistently demonstrated leadership in embracing cutting-edge technologies."

"Together, we are committed to developing Defense AI capabilities that will strengthen the EDF and the entire alliance," he added.

According to the joint statement, both parties will work together to explore the application of advanced AI-capabilities for the EDF, drawing on recent lessons from global conflicts.

The defense ministry said the deal aligns with Estonia's strategic objective to promote national security and attract top European defense firms.

The company will collaborate closely with Estonian industrial partners to provide AI-driven defense capabilities, directly supporting the ministry's strategic goals, the ministry added.

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