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The general hype around all things AI is not lifting all boats: some startups continue to struggle and are looking for exits. In one of the latest developments, TechCrunch heard from a reliable source that Metropolisan AI-powered parking platform, buy Purchasethe controversial computer vision company that was known as AnyVision. The source tells TechCrunch that the deal is valued at $125 million — just a third of the $380 million the startup had raised from investors over the years — and likely a fraction of its peak valuation.
Metropolis buying Oosto for $125 million are details that have also been reported Israeli press. Last week, Globes broke the news that Oosto was for sale. We understand that the two companies had already worked together before this deal, and that a large part of the transaction involves shares. We’ve reached out to both Metropolis and Oosto for more information and will update this post as we learn more.
If completed, the sale will mark a turbulent several years for Oosto.
Like AnyVision, the company has been one of a wave of computer vision startups building technology used in controversial surveillance applications. Over the years, there have been reports that expose which organizations were quietly using their technology and how the Israeli government the hangman for spying on the Palestinians; other reports can shed light on how much data the company was able to collect. Bad publicity led to the company lose Microsoft as a key strategic investor, although other investors were ready to double down. In 2021, AnyVision, presenting itself as an ethical AI company, raised the 235 million dollars led by SoftBank and Eldridge. Other supporters of the company have included Lightspeed and Qualcomm, for PitchBook data.
A few months after the great growth of SoftBank, AnyVision rebranded to Oosto and sought to pivot to more enterprise applications as it signed a research partnership with Carnegie Mellon. But it seems the difficulties continue, with rounds of layoffs and Oosto parting ways with the university. Today’s report in Calcalist noted that it did not exceed $10 million in annual revenue.
It’s worth wondering if some of Oosto’s problems might be a question of timing. The last two years have seen major geopolitical changes; AI is entering the mainstream of public consciousness; and a new wave of AI companies like Anduril and Helsing that seem to be breaking down many taboos about building military, defense and (more euphemistically) “resilience” technology.
Is AnyVision (or Oosto) as controversial today as it was five years ago? Regardless, the rise and fall of Oosto can be seen as a memento mori for the new wave of AI companies that have been funded today on very high hopes, but perhaps not very high revenues (due to profits).
Which brings us to Metropolis. It’s also focused on computer vision, but focus is perhaps the operative word here: its square aim is to build AI-based systems for parking, which automatically follow cars when they enter or leave a space and charge accordingly. In 2023, Metropolis raised $1.7 billion in financing and other investments, most of which was used to make a $1.5 acquisition of another parking technology specialist called SP Plus. Whether it will use Oosto to continue building that business, or to extend it into a wider range of mobility and other applications, remains to be seen.
“Tech-wise this acquisition makes perfect sense,” Avihai Michaeli, an investment banking advisor based in Tel Aviv, told TechCrunch. “Both Metropolis and Oosto (formerly known as AnyVision Tech) are key players in the space of computer vision and AI-driven security solutions, 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 now has made it challenging for some Israeli companies trying to raise money or do other activities, which could also have a role here.
