The general hype around all things AI is not lifting all boats, as certain startups continue to struggle and look for exits.
In one of the latest developments, TechCrunch has learned and confirmed that Metropolis, an AI-powered parking platform, has acquired Oosto, the controversial computer vision company that used to be known as AnyVision. TechCrunch understands the all-stock deal is valued at $125 million -- just one-third of the $380 million that the startup had raised from investors over the years, and likely a fraction of its peak valuation.
Metropolis's tech is used in 4,000 locations and the company says it processes some $5 billion in payments annually. And $5 billion is an important number. We understand that Metropolis is now in the process of fundraising at a valuation that is approaching $5 billion. Oosto investors -- which include SoftBank, FifthWall, Lightspeed, DFJ, Eldridge Industries and others -- receive Series D preferred stock in as part of the Oosto transaction. The acquisition includes Oosto's IP and team, and CEO Avi Golan and CTO Dieter Joecker will take senior roles at Metropolis.
A spokesperson confirmed the details over the phone and in a statement: "Metropolis, an artificial intelligence company whose computer vision platform enables checkout-free payment experiences for the real world, has agreed to acquire Oosto, the leading AI safety and security company." Metropolis will be folding in some of Oosto's technology to enhance its current business, she added.
Last week, Globes broke the news that Oosto was up for sale.
The sale caps off a turbulent several years for Oosto.
As AnyVision, the company was one of a wave of computer vision startups building technology being used in controversial surveillance applications. Over the years, there were reports exposing which organizations were quietly using its technology, and how the Israeli government tapped it to spy on Palestinians; other reports shed light on just how much data the company was able to collect.
The bad publicity led to the company losing Microsoft as a key strategic investor, although other investors were ready to double down. In 2020, it appointed a new CEO, Avi Golan, who had worked at SoftBank, and then in 2021, AnyVision, pitching itself as an ethical AI company, raised a whopping $235 million in a round led by SoftBank and Eldridge. Other backers of the company have included Lightspeed and Qualcomm, per PitchBook data.
Just months after the big SoftBank raise, AnyVision rebranded to Oosto and looked to pivot to more enterprise applications as it inked a research partnership with Carnegie Mellon. But it seems that the difficulties continued, with rounds of layoffs and Oosto parting ways with the university.