The general hype around all things AI is not lifting all boats: some startups continue to struggle and look for exits. In one of the latest developments, TechCrunch heard from a reliable source that Metropolisan AI-powered parking platform, shopping Conversionsthe controversial computer vision company formerly known as AnyVision. The source told 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.

Metropolis buying Oosto for $125 million are details also reported Israeli press. Last week, Globes the news came out that Oosto was sold. We understand that the two companies have been working together prior to this deal, and that a large part of the transaction involves shares. We’ve reached out to Metropolis and Oosto for more information and will update this post as we learn more.

If it goes through, the sale will end a tumultuous several years for Oosto.

As AnyVision, the company is one of a wave of computer vision startups building technology used in controversial surveillance applications. Over the years, there have been disclosure reports which organizations are quietly using its technology and how Israeli government tapped it to spy on Palestinians; other reports shed light how much data the company collects. Bad publicity took its toll on the company loss of Microsoft as a key strategic investor, even if other investors are willing to double down. In 2021, AnyVision, which positions itself as an ethical AI company, raised a a whopping $235 million led by SoftBank and Eldridge. The company’s other backers include Lightspeed and Qualcomm, respectively PitchBook data.

Just a few months after SoftBank’s big raise, AnyVision rebranded to Oosto and is looking to pivot to more business applications as it signs a research partnership with Carnegie Mellon. But the difficulties seem to have continued, with rounds of dismissals and Oosto’s separation from the university. Calcalist’s current report says it doesn’t make more than $10 million in annual revenue.

It’s worth wondering if some of Oosto’s problems could be a question of time. The last two years have seen major geopolitical shifts; AI entering the mainstream of public consciousness; and a new wave of AI companies like Anduril and Helsing that seem to be breaking many taboos in building military, defense and (more euphemistically) “resilience” technology.

Does AnyVision (or Oosto) appear 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 newer wave of AI companies that are now funded with very high hopes, but perhaps not very high returns (especially profits). .

That brings us to Metropolis. It, too, is focused on computer vision, but focus is perhaps the operative word here: its square aim is to build AI-based systems for parking, automatically tracking cars when they enter or leave a space and charge accordingly. In 2023, Metropolis raised $1.7 billion in financing and other investments, much of which was used to make a $1.5 million acquisition of another parking technology specialist called SP Plus. Whether Oosto will be used to continue building that business, or to add a broader range of mobility and other applications, remains to be seen.

“Technology-wise this acquisition makes perfect sense,” Avihai Michaeli, an investment banking advisor based in Tel Aviv, told TechCrunch. “Metropolis and Oosto (formerly known as AnyVision Tech) are key players in the AI-driven computer vision and security solution space, with applications that improve city management, public safety, and automation .The two companies focus on using the latest technology to create a safer, smarter, and more efficient environment through artificial intelligence and data analytics challenging for some Israeli companies that want to raise money or do other businesses, which can also play a role here.