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The general hype around all things 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 a reliable source that metropolisAn AI-powered parking platform, is buying purchaseThe controversial computer vision company was known as AnyVision. The source tells TechCrunch that the deal is worth $125 million, just a third of the $380 million the startup has raised from investors over the years and likely a fraction of its peak valuation.
Details of Metropolis buying Oosto for $125 million have also been reported Israeli Press. last week, Globes News broke that Osto was up for sale. We understand that the two companies were already working together before this deal and that a large part of the transaction involved shares.
TechCrunch has reached out to both Metropolis and Oosto for more information, and we’ll update this post as we learn more.
If it goes through, the sale will mark several years of turmoil for Osto.
As AnyVision, the company was a wave of computer vision startups building technology used in controversial surveillance applications. For years, there was Publishing the report Which companies were quietly using its technology and how? Government of Israel It has been tapped to spy on Palestinians; Other reports highlight on how much information the company was able to collect.
Bad publicity led to the company Lose Microsoft As a key strategic investor, however, other investors were ready to double down. In 2021, AnyVision, positioning itself as an ethical AI company, 235 million dollars In a round led by SoftBank and Eldridge. The company’s other backers include Lightspeed and Qualcomm Pitchbook data.
Just a few months after the big SoftBank raise, AnyVision Rebranded to Osto And it’s looking to pivot to more enterprise applications as it signs a research partnership with Carnegie Mellon. But it seems that problems continued, leading to a series of layoffs and a break with the University of Ostrow. Israeli newspaper Calcalist noted in a report on Monday that the company does not exceed $10 million in annual revenue.
It’s worth wondering if some of Osto’s problems were just a matter of time. The last few years have seen major geopolitical changes, AI has entered the mainstream of public consciousness, and a new wave of AI companies like Anduril and Helsing seem to be breaking many of the taboos of building military, defense and (more euphemistically) “resilience.” . Technology
Is any vision (or osto) as controversial today as it was five years ago? In any case, Oosto’s rise and fall can be seen as a monumental mori for the new wave of AI companies today that are being funded with very high hopes, but perhaps not much revenue (let alone profit).
Which brings us to Metropolis. It’s also focused on computer vision, but “focus” is probably the operative word here: Its square aim is to create an AI-based system for parking, automatically tracking when cars enter or leave a space and charging accordingly. In 2023, Metropolis raised $1.7 billion in financing and other investments, most of which were used to buy parking technology specialist SP Plus for $1.5 billion.
It remains to be seen whether Metropolis will use Oosto to continue building that business or expand into a broader range of mobility and other applications.
“This acquisition makes perfect sense from a technology standpoint,” Avihai Michaeli, an investment banking advisor based in Tel Aviv, told TechCrunch. “Both Metropolis and Osto (formerly known as AnyVision Tech) are key players in the AI-powered computer vision and security solutions space, with applications that enhance urban management, public safety and automation. Both companies focus on leveraging cutting-edge technology to create safer, smarter and more efficient environments through artificial intelligence and data analytics.”
He added that the current war in Israel has made it challenging for some Israeli companies looking to raise money or do other business, which could play a role here as well.
