Autodesk, a publicly traded software and services company in the United States serving the engineering and design sectors, has completed the acquisition of Spacemaker, an innovative startup from Norway specializing in AI-powered software for city planning.

The acquisition was finalized for $240 million, primarily funded through cash. Spacemaker had previously received investment from European venture capital firms Atomico and Northzone, who jointly led a $25 million Series A funding round in 2019. Additional investors included NREP, a Nordic real estate innovator, OBOS, a Nordic property developer, Round Hill Ventures, a U.K. real estate technology fund, and Construct Venture, a Norwegian investment firm.

Established by Håvard Haukeland, Carl Christensen and Anders Kvale, and headquartered in Oslo, Norway, with additional locations internationally, the 115-person Spacemaker team creates and markets cloud-based software that leverages artificial intelligence to assist architects, urban planners, and real estate developers in making well-informed design choices. As CEO Haukeland explains, the software is designed to work alongside professionals, enhancing their capabilities and streamlining the urban development design and planning process, while also improving results related to sustainability and the quality of life for future residents.

The platform allows users to rapidly “create, refine, and test” various design concepts, considering factors such as topography, maps, wind patterns, sunlight, traffic flow, and zoning regulations. Spacemaker then provides optimized design alternatives that maximize the potential of the site.

“Our initial intention in 2020 wasn’t to sell the company,” Haukeland stated in a recent conversation. “However, discussions with Autodesk, who had expressed interest for some time, revealed a shared vision. We recognized that joining forces with Autodesk would significantly accelerate our progress and enable us to realize our goals more effectively. Our primary focus is to bring our vision to life and make our solutions available to a wider audience of architects, engineers, and developers.”

During a call on Friday, Andrew Anagnost, CEO and president of Autodesk, explained that the acquisition of Spacemaker aligns with the company’s long-term strategy of utilizing cloud technology, cost-effective computing power, and machine learning to revolutionize the design process.

“This acquisition represents a strategic move we’ve been actively pursuing, both through internal product development and our evaluation of potential acquisitions,” he said.

“We have been monitoring this area closely; Spacemaker’s application can be characterized, in our terms, as ‘generative design’ for urban planning, meaning the system generates and explores options for urban planning applications.”

“Spacemaker excels in applying cloud computing, artificial intelligence, and data science to empower individuals to explore multiple options and make superior decisions.”

“Autodesk intends to allow Spacemaker to maintain its identity; they are acquiring not just our product, but also our potential, our journey as a team,” Haukeland explained. “They are investing in our mission, our work methods, our accumulated knowledge, and even our past setbacks… it’s far more than simply absorbing the product.”

This knowledge and experience stem from the Spacemaker CEO’s background as an architect, as well as the company’s journey to achieving product-market fit and the underlying technology itself.

“Initially, they focused on directly targeting architects, but discovered their budgets were limited,” recalls Michiel Kotting, who led Spacemaker’s Series A round for Northzone. “Based on Håvard’s industry experience, they shifted to serving property developers, who then provided the software to their internal and external architects. They were surprised to quickly secure substantial six-figure contracts per project.”

Kotting also notes that the team quickly recognized the potential of generative design. “Rather than replicating traditional paper-based methods, the full power of modern computing is now available to architects,” he said. “The development process has been similar to Deep Mind’s AlphaGo project — a combination of various techniques, machine learning, AI, and rule-based optimization, all working together to deliver the best results, rather than simply applying the latest deep learning model.”

“They were effectively addressing a problem, a challenge that our customers were telling us they wanted solved and appreciated their approach,” says Anagnost. “It wasn’t just a talented team with a promising idea and advanced technology; they actually solved a real-world problem. And I believe this is crucial: you can experiment with technology endlessly, but if you can’t identify an opportunity to create something new or solve an existing problem in a groundbreaking way, you haven’t created something truly valuable. They have created something valuable.”

“When we invested in Spacemaker’s Series A round less than two years ago, we recognized a leading-edge product and a company with the potential to redefine the application of AI in architecture and property development,” says Ben Blume of Atomico. “As the global leader in architecture, engineering, and construction (AEC) software, and with products that set industry standards, Autodesk’s acquisition validates our belief that world-class AI products are being developed in Europe.”

He also believes the team’s success is rooted in a unique combination of architectural expertise and advanced software engineering skills. Norway’s location may have provided an advantage in this regard. “It might not be immediately apparent that you’d find many of these skills in Norway, but some of the complex optimization challenges in the oil and gas industry are similar to those faced by Spacemaker, making it a surprisingly fertile ground for talent,” adds Kotting.

The challenge wasn’t a lack of talent in Norway, but rather attracting the most skilled individuals to a startup. This is where Spacemaker’s mission and Nordic culture played a key role.

Haukeland reflects: “We found that when tackling a complex problem with ambitious goals, you need exceptionally talented individuals who are empowered to solve problems independently, as there are numerous challenges to overcome. Four years ago in Norway, many of the best professionals were drawn to either the oil and gas industry or consulting. However, we observed a growing desire among people to join a mission where they could make a positive impact and utilize their skills to address difficult problems. We were fortunate to attract incredible talent because of this.”

Anagnost also emphasizes Spacemaker’s culture and its European perspective as differentiators. “This is a European high-technology company utilizing cutting-edge algorithms and cloud-based approaches, built upon a strong ethical framework that may be less common in startups elsewhere,” he explains. “What sets them apart is their ethical approach: they aim to use data to empower users to improve their work, while also creating better outcomes for all stakeholders, including the environment. This ethos seems to have emerged more rapidly in the European market than in some U.S. markets, where the focus is often on rapid progress without considering ethical implications.”

However, given Europe’s current enthusiasm for high-growth companies—and its increasing success in producing businesses valued at $1 billion or more—a valid question is whether the Norwegian startup sold too soon.

“I believe that’s a perspective primarily driven by venture capitalists, focusing on maximizing their returns,” argues the Autodesk CEO. “However, if you consider the goals of the employees and the company, they will likely achieve more by collaborating closely with Autodesk than they would by continuing to raise capital and increase their valuation. While VCs might see a smaller return, the employees are unlikely to see a greater benefit to their vision. And, having spoken with these individuals, they are deeply passionate about their work.”

“Although we believe this exit comes relatively early in the journey, we share the enthusiasm for maximizing impact quickly and recognize the importance Autodesk places on the Spacemaker product,” says Kotting.

Meanwhile, Haukeland asserts that Spacemaker has only developed “5% of what is possible” and believes the industry is at the beginning of a significant transformation in how people work. “The shift from designing and then evaluating to asking your computer for assistance and receiving advice is a game-changer. This is a fundamental change that goes beyond simply releasing a product; it’s a shift that will reshape the industry for years to come.”

“We will continue to support them and encourage them to expand their product,” says Anagnost, “while also providing opportunities to integrate their technology with other parts of the Autodesk ecosystem.”