Israeli startup 42AI has emerged from stealth with $62.5 million in seed funding, raised over three years from its founders and Infinity Group. The company was founded by CEO Amit Gal-Or, CTO Ehud Ezra and chairman Amir Gal-Or, who also founded Infinity.
The company is developing a "behavioral world model" that tries to predict individual decisions from underlying psychological tendencies rather than past behavior alone. It is starting with financial markets: the system analyzes customer onboarding data, transactions, support calls and voice sentiment to predict how traders will respond to market changes, so brokerages can adjust their hedging.
According to the report, the company works with 10 large brokerages and has reached seven-figure revenue. It claims 98% accuracy in predicting trading activity, but the metric measures whether trading flows fall within a predicted range, not whether individual trades are forecast correctly. The company is also exploring uses in fraud prevention, cybersecurity and gaming.