The general hype around AI isn’t lifting all boats. Some startups continue to struggle and are looking for an exit.
In one of the latest developments, TechCrunch has learned from reliable sources that Metropolis, an AI-powered parking platform, is acquiring controversial computer vision company Oosto, formerly known as AnyVision. The deal values the company at $125 million, just one-third of the $380 million it has raised from investors over the years, likely at its peak, people told TechCrunch. It is only a fraction of the appraised value.
Details of Metropolis’ acquisition of Aust for $125 million have also been reported in Israeli media. Last week, the Globes broke the news that Oosto was up for sale. We understand that the two companies were already working together prior to this transaction and that a significant portion of the transaction involves equity.
TechCrunch has reached out to both Metropolis and Oosto for more information and will update this post as we learn more.
If the sale is completed, it will end a turbulent few years for Ost.
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. In 2021, AnyVision, which markets itself as an ethical AI company, raised 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. The Israeli newspaper Calcalist noted in a report on Monday that the company’s annual revenue does not exceed $10 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 national consciousness and a new wave of AI companies like Anduril and Hellsing expanding into military, defense, and (more euphemistically) “resilience” industries. ” seems to be breaking many 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 of the rise and fall of AI companies that are being funded today 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 “focused” is probably the better word here. Its immediate purpose is to build an AI-based system for parking, automatically tracking cars as they enter and exit spaces and charging them accordingly. In 2023, Metropolis raised $1.7 billion in financing and other investments, most of which was used to acquire another parking technology company called SP Plus for $1.5 billion.
It remains to be seen whether Metropolis will continue to build its business with Oosto or expand into a broader range of mobility and other applications.
“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.
