The general hype around AI is not lifting all boats as some startups continue to struggle and look for an exit.
In one of its latest developments, TechCrunch has learned and confirmed that AI-powered parking platform Metropolis has acquired controversial computer vision company Oosto, formerly known as AnyVision. TechCrunch understands that the all-stock deal is worth $125 million. That’s only a third of the $380 million the startup has raised from investors over the years, and likely a fraction of its peak valuation.
Metropolis’ technology is used in 4,000 locations, and the company says it processes about $5 billion in payments annually. And $5 billion is an important number. Metropolis is currently raising funds at a valuation approaching $5 billion. Oosto investors (including SoftBank, FifthWall, Lightspeed, DFJ, Eldridge Industries, and others) will receive Series D preferred stock as part of the Oosto transaction. The acquisition includes Oosto’s IP and team, with CEO Avi Golan and CTO Dieter Joecker taking on senior roles at Metropolis.
A spokesperson confirmed the details over the phone and said in a statement: “Metropolis, an artificial intelligence company whose computer vision platform enables real-world checkout-free payment experiences, has agreed to acquire Aust, a leading AI safety and security company.” It plans to incorporate some of Ost’s technology to strengthen it, she added.
Last week, the Globes broke the news that Oosto was up for sale.
The sale ends a turbulent few years for Oosto.
As AnyVision, the company was one of a wave of computer vision startups building technology used in controversial surveillance applications. Over the years, there have been reports exposing which organizations are secretly using the technology and how the Israeli government has used it to spy on Palestinians. Other reports reveal how much data the company was able to collect.
Although the bad publicity caused the company to lose Microsoft as a major strategic investor, other investors were prepared to double down. After appointing Avi Golan, who previously worked at SoftBank, as its new CEO in 2020, Anyvision pitched itself as an ethical AI company in 2021, raising a whopping $235 million in a round led by SoftBank and Eldridge. . Other backers of the company include Lightspeed and Qualcomm, according to PitchBook data.
Just months after SoftBank’s major funding, AnyVision changed its brand name to Oosto and aimed to pivot to more enterprise applications as it entered into a research partnership with Carnegie Mellon University. However, it seems that difficulties continued, with a series of layoffs and Ost parting ways with the university.
Sources close to the company said Oosto had annual revenues of about $20 million.
It’s worth considering whether part of Oosto’s problem was a timing issue. The past few years have seen major geopolitical shifts, with AI entering the mainstream of public consciousness and a new wave of AI companies like Anduril and Hellsing expanding into military, defense, and (more euphemistically) resilience. seems to be trying to break a lot of taboos regarding construction. ” Technology.
Would AnyVision (or Oosto) be as controversial today as it was five years ago? In any case, the rise and fall of Oosto is a sign that today’s AI companies are being funded with very high expectations. can be considered monumental to the new wave of, but probably not very high returns (not to mention profits).
That leads to Metropolis. It also focuses on computer vision, but “focus” is probably the better word here. Its immediate aim is to build an AI-based system for the parking environment, automatically tracking cars entering and exiting spaces and charging them accordingly. Metropolis raised $1.7 billion in financing and other investments in 2023, most of which was used to acquire another parking technology company called SP Plus for $1.5 billion.
From what we understand, the current master plan is to use Oosto technology to expand Metropolis’ capabilities around computer vision in parking environments, rather than expand to cover many other use cases. will be strengthened. Over time, we are likely to see more applications (such as drive-throughs) where customers drive in and out of business environments on a regular basis.
“Technically, this acquisition makes perfect sense,” Avihai Michaeli, a Tel Aviv-based investment banking advisor, told TechCrunch. “Metropolis and Oosto (formerly known as AnyVision Tech) are both leading players in the AI-driven computer vision and security solutions space with applications that power urban management, public safety, and automation. Both companies are focused on leveraging cutting-edge technology to create a safer, smarter, and more efficient environment through artificial intelligence and data analytics.
He added that the current war in Israel has created difficulties for some Israeli companies trying to raise money or do other business, and that may have also played a role here.