AI vision startup Metropolis acquires Oosto for $125 million

The recent craze in the AI ​​field has not benefited all companies, and some startups are still looking for a way out. Metropolis, an AI-based parking platform, has acquired controversial computer vision company Oosto, formerly known as AnyVision. The deal, an all-stock deal, values ​​Oosto at $125 million, well below the $380 million Oosto has raised from investors over the years and clearly below its peak valuation.

Metropolis' technology is used in 4,000 locations and handles $5 billion in annual payments. The company is raising capital at a valuation of nearly $5 billion. Oosto's investors include SoftBank, FifthWall, Lightspeed, DFJ and others, and they will receive Series D preferred shares as part of the deal. The acquisition includes Oosto's intellectual property and team, and Oosto's CEO Avi Golan and CTO Dieter Joecker will assume senior roles at Metropolis.

A Metropolis spokesman confirmed the details of the deal, saying the acquisition would help Metropolis enhance its current business. The sale of Oosto marks the end of a tumultuous few years for the company. As AnyVision, the company was one of a group of startups developing computer vision technology that was widely used in controversial surveillance applications. Over time, the company encountered a lot of bad press, causing it to lose a key strategic investor in Microsoft.

Despite this, Oosto still successfully raised US$235 million in 2021, then changed its name to Oosto and tried to shift to more enterprise applications. However, the company continues to face difficulties, including layoffs and the end of its partnership with Carnegie Mellon University. It is understood that Oosto’s annual revenue is approximately US$20 million.

In the context of AI technology increasingly becoming the focus of public attention, Oosto's difficulties may also be related to market timing. Nonetheless, Metropolis' current goal is to focus on computer vision technology for parking lot environments, using Oosto's technology to enhance its functionality, and may expand to other areas in the future, such as rapid car access.