The excitement around AI isn’t benefiting everyone, as some startups face challenges and look for exits.
In a noteworthy move, Metropolis, an AI-driven parking platform, recently acquired Oosto, a computer vision company previously known as AnyVision. The $125 million stock deal marks a significant drop from Oosto’s $380 million in raised funding and its likely higher peak valuation.
According to a spokesperson, “Metropolis, an AI company offering checkout-free payment solutions, agreed to acquire Oosto, a leader in AI safety and security.” Importantly, Metropolis plans to integrate parts of Oosto’s technology into its operations, which could enhance their existing services.
Currently, Metropolis operates across 4,000 locations and manages $5 billion in annual payments. As part of this deal, Oosto’s investors—including SoftBank, FifthWall, Lightspeed, DFJ, and Eldridge Industries—will now hold Series D preferred stock in Metropolis. Moreover, the agreement includes Oosto’s intellectual property and team. Both Oosto’s CEO Avi Golan and CTO Dieter Joecker will take on senior roles at Metropolis.
Reports suggest that Oosto had already been seeking a buyer as of last week. Furthermore, industry sources revealed that Metropolis and Oosto had started collaborating prior to the acquisition.
Looking back, Oosto’s journey was anything but smooth. Originally known as AnyVision, the company gained attention for its application of computer vision in controversial surveillance projects. Unfortunately, investigative reports revealed its involvement in government spying operations, which caused Microsoft to withdraw as an investor. Nevertheless, other investors chose to continue their support.
In 2020, Avi Golan stepped in as CEO, and in 2021, the company rebranded as Oosto after securing $235 million in funding led by SoftBank and Eldridge. Shortly after, Oosto shifted its focus to enterprise applications, including a partnership with Carnegie Mellon University. However, layoffs and the eventual end of this partnership followed. According to sources, Oosto’s annual revenue never exceeded $10 million, which may have contributed to its struggles.
Timing, however, also played a role. The AI landscape has evolved significantly, with companies like Anduril and Helsing now succeeding in areas previously deemed controversial, such as defense and security.
This raises an important question: Could AnyVision have avoided scrutiny in today’s AI climate? Regardless, Oosto’s story serves as a cautionary tale, highlighting the risks AI startups face when chasing high valuations without securing substantial revenue growth.
Meanwhile, Metropolis remains focused on its niche—parking. Specifically, its systems track vehicle entry and exit, automating payments seamlessly. In 2023, the company raised $1.7 billion, most of which funded its $1.5 billion acquisition of SP Plus, a parking tech provider.
By integrating Oosto’s technology, Metropolis intends to enhance its parking solutions further. Additionally, potential future expansions could include applications in drive-throughs or other customer-facing environments.
On the other hand, investment advisor Avihai Michaeli noted that the acquisition aligns perfectly with both companies’ expertise in AI-based computer vision. He also added that challenges such as the current war in Israel have made it harder for Israeli companies to secure funding or close deals, which likely influenced this sale.
For more insights into Metropolis’s AI-driven solutions, check out their official website. To explore Oosto’s computer vision technology, visit this resource.
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The recent acquisition of Oosto by Metropolis highlights the dynamic and often unpredictable nature of the AI industry. While mergers and acquisitions can bring strategic advantages, the significant drop in Oosto’s valuation raises questions about the challenges faced by AI startups in maintaining their value. It’s interesting to see how Metropolis plans to integrate Oosto’s technology into its operations—could this lead to innovative solutions in AI-driven payments and security? Oosto’s controversial past with surveillance projects adds complexity to this deal, making me wonder how Metropolis will navigate potential ethical concerns. The inclusion of Oosto’s leadership team in senior roles at Metropolis suggests a focus on leveraging their expertise. Overall, this acquisition seems like a bold move, but it remains to be seen whether it will yield the expected benefits. Do you think this deal will set a positive precedent for similar mergers in the AI industry, or does it signal deeper issues in the startup ecosystem?
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Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me?
Your article helped me a lot, is there any more related content? Thanks!