AI Vision Startup Metropolis Acquires Oosto (Formerly Known as AnyVision) for Just $125M

The excitement surrounding artificial intelligence hasn’t been enough to buoy all companies, as some startups continue to face challenges and seek exits.

Recently, it was confirmed that Metropolis, an AI-powered parking platform, has acquired Oosto, a computer vision company previously known as AnyVision. The all-stock deal is valued at $125 million—significantly less than the $380 million Oosto had raised from investors and likely a fraction of its peak valuation.

Metropolis operates in 4,000 locations and handles approximately $5 billion in payments annually. This figure is particularly relevant as the company is reportedly fundraising at a valuation nearing $5 billion. As part of the acquisition, Oosto’s investors—including SoftBank, Fifth Wall, Lightspeed, DFJ, Eldridge Industries, and others—will receive Series D preferred stock. The deal also includes Oosto’s intellectual property and team, with CEO Avi Golan and CTO Dieter Joecker assuming senior roles at Metropolis.

A spokesperson confirmed the details, stating: “Metropolis, an artificial intelligence company specializing in computer vision technology for checkout-free payment experiences, has acquired Oosto, a leading AI safety and security company.” Metropolis plans to integrate aspects of Oosto’s technology into its existing operations.

The sale marks the end of a tumultuous period for Oosto.

When operating as AnyVision, the company became known for developing computer vision technology often linked to controversial surveillance applications. Over time, reports revealed the organizations using its technology, including allegations about its use by the Israeli government for surveillance activities. These controversies, alongside concerns about data collection practices, led to significant scrutiny.

The backlash caused Microsoft to withdraw as a key strategic investor, though other backers remained committed. In 2020, Avi Golan, formerly of SoftBank, was appointed CEO. By 2021, the company rebranded as Oosto, securing $235 million in funding led by SoftBank and Eldridge, and pursued partnerships like one with Carnegie Mellon University. However, the company struggled with layoffs and eventually parted ways with the university.

Sources suggest that Oosto had been generating around $20 million in annual revenue.

The challenges faced by Oosto may, in part, reflect shifting industry and geopolitical dynamics. Recent years have seen AI gain widespread acceptance, with companies like Anduril and Helsing thriving in military and defense applications. Had AnyVision launched in today’s climate, it might not have faced the same level of controversy. Regardless, Oosto’s trajectory serves as a cautionary tale for AI startups with high valuations but limited revenues.

Metropolis, on the other hand, has maintained a focused approach, using AI-driven computer vision to streamline parking operations. Its systems track vehicles entering and exiting spaces and facilitate automated payments. In 2023, Metropolis secured $1.7 billion in funding, much of which was used to acquire SP Plus, a parking technology company, for $1.5 billion.

The integration of Oosto’s technology is expected to enhance Metropolis’s computer vision capabilities in parking environments, with potential applications extending to areas like drive-throughs and other locations where vehicles frequently enter and exit.