AI vision startup Metropolis buys Oosto (formerly AnyVision) for just $125 million, sources say

The general hype around all things AI doesn’t lift all boats: some startups continue to struggle and look for exits.

In one of the latest developments, TechCrunch has learned from a reliable source that Metropolisan AI-powered parking platform, is in the process of being purchased ustothe controversial computer vision company that used to be known as AnyVision. The source tells TechCrunch that the deal is worth $125 million, a third of the $380 million the startup has raised from investors over the years, and likely a fraction of its peak valuation.

Metropolis’ purchase of Oosto for $125 million are details also reported on Israeli press. last week, Globes He announced the news that Oosto was up for sale. We understand that the two companies were already working together before this deal, and that a significant portion of the deal is equity-related.

TechCrunch has reached out to both Metropolis and Oosto for more information and we’ll update this post as we learn more.

If the sale is completed, it will end a turbulent multi-year period for Oosto.

Like AnyVision, the company was one of a wave of computer vision startups working to build technology used in controversial surveillance applications. Over the years, there has been Exposing reports Which organizations have been quietly using its technology, and how Israeli government And exploiting it to spy on the Palestinians; Other reports highlight On the amount of data the company was able to collect.

It led to bad publicity for the company Microsoft’s loss As a major strategic investor, although other investors were willing to double their investments. In 2021, AnyVision, which promotes itself as an ethical AI company, raised a A whopping $235 million In a round led by SoftBank and Eldridge. Other backers of the company include Lightspeed and Qualcomm Beachbook data.

Just months after SoftBank’s big raise, AnyVision It was rebranded as Oosto It looked to focus on more enterprise applications as it signed a research partnership with Carnegie Mellon University. But the difficulties seem to have continued, with rounds of layoffs and Osto’s separation from the university. The Israeli newspaper Calcalist indicated in a report on Monday that the company did not achieve annual revenues exceeding $10 million.

It is worth wondering whether some of Ostow’s problems may be a matter of timing. The past couple of years have seen major geopolitical shifts, AI has entered the mainstream of public consciousness, and a new wave of AI companies like Anduril and Helsing appear to be breaking many of the taboos regarding military building, defense, and (to put it more euphemistically) “resilience.” technology.

Would AnyVision (or Oosto) seem as controversial today as it did five years ago? Regardless, Osto’s rise and fall can be seen as a memento of the newer wave of AI companies today being funded on the basis of very high hopes, but perhaps not very high revenues (let alone profits).

This brings us to Metropolis. It’s also focused on computer vision, but perhaps “focus” is the operative word here: Its square goal is to build AI-based parking systems that automatically track cars as they enter or leave a space, and charge them accordingly. In 2023, Metropolis Raised $1.7 billion In financing and other investments, most of which were used to buy another parking technology company called SP Plus for $1.5 billion.

It remains to be seen whether Metropolis will use Oosto to continue building this business 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 consultant, told TechCrunch. “Both Metropolis and Oosto (formerly AnyVision Tech) are major players in computer vision and AI-based security solutions, with applications that advance urban management, public safety, and automation. Both companies are focused on leveraging the latest technologies 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 difficult for some Israeli companies looking to raise money or do other business, which could also have played a role here.