Swedish impact investor Norrsken VC has pledged to invest €300 million ($348 million) in artificial intelligence startups that aim to help solve some of the climate’s most pressing needs.

The venture capital firm, founded by Klarna co-founder Niklas Adalberth, plans to invest in AI companies alongside its early-stage funds Norrsken Accelerator and Norrsken Launcher, according to a statement on Wednesday.

“We would love to see AI with all its power be used to solve some of the biggest challenges out there,” Norrsken General Partner Tove Larsson said in an interview.

The investments pledge adds fuel to an already surging industry that last year attracted over $110 billion in investments, according to Norrsken. “It’s one of the most intense capital flows we have ever seen,” Larsson said.

One area of contention for ethical investing is the massive energy use required to run data centers that support AI-powered services such as ChatGPT. While Larsson admits energy consumption is a concern, her fund is nevertheless exploring investments in startups that meet those challenges head on, for example Submer Technologies SL and Evroc AB.

“We are looking at companies that can significantly reduce the footprint of the data centers and hence enable a more sustainable AI revolution,” she said.

–By Lydia Löthman (Bloomberg)