Swedish impact funds Norrsken pledge €300m to AI: 'Most capital is chasing the same old playbook'

Swedish impact investor Norrsken is allocating €300 million to back European startups using AI to address major societal challenges.

The capital will be drawn from across three of its funds: Norrsken VC, Norrsken Launcher, and Norrsken Accelerator.

In an open letter, Norrsken calls on the industry to shift focus: "Artificial intelligence is the most powerful tool humanity has ever created. Yet, so far, we are mainly using it to optimize clicks and automate emails." The organization says it wants to invest in AI that "actually matters" and calls on other investors to do the same.

The letter warns that most current AI investments follow a narrow playbook of productivity growth and convenience. "We’re in a full-blown AI gold rush," it states. "If history repeats itself, 80 percent of today’s AI startups will disappear. The other 20 percent are the ones solving real problems. Not building incremental tools, but using AI to fix broken systems, meet fundamental needs, and reshape industries with deep, lasting demand."

Norrsken's investment will focus on startups using AI to tackle issues such as clean energy, healthcare, education, and food systems.

The announcement comes just months after Norrsken Foundation – founded by Klarna co-founder Niklas Adalberth – opened a new co-working space and impact hub in Brussels, in an effort to back European entrepreneurs tackling global problems.