Sweden's Wallenberg family backs AI software maker Peltarion

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(Bloomberg) -- Sweden’s most powerful industrial family has invested 11 million euros ($13 million) in a maker of a software platform that lets companies use artificial intelligence to improve their business.

Stockholm-based Peltarion AB raised the funds from FAM, the holding company owned by the three largest Wallenberg family foundations, and will use the money to hire more staff and accelerate development of its software, it said in an emailed statement on Tuesday.

Funding was also provided by EQT Ventures, partly owned by the Wallenberg family’s publicly traded holding company Investor AB. The new investment brings Peltarion’s total financing to 14 million euros.

“AI is already revolutionizing many companies around the world but it’s also depleting the world’s scarce AI talent resource,” Marcus Wallenberg, chairman of FAM, said in the statement. Solutions like Peltarion’s can help ensure that companies can have easier access to AI technology, he said.

From self-driving cars to robot-powered factories, artificial intelligence is reshaping significant pieces of the global economy. Peltarion makes a graphical cloud platform that develops, manages and deploys AI systems using public or proprietary data sets. The company’s business idea is to market its platform to companies that lack the resources or expertise to create their own applications, but still want to improve their operations with AI.

“There is a lot of hype around AI, and often people expect too much in the short term,” Peltarion’s founder and Chief Executive Officer Luka Crnkovic-Friis said in an interview in Stockholm. “But over the longer term, it will affect many industries and the situation today is that the technology is controlled by a handful of large tech companies. We don’t think that’s good and we want to spread it to as many people as possible.”

Peltarion was founded 14 years ago in Stockholm. Companies and organizations including NASA, Deutsche Bank AG and Tesla Inc. use its software.

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