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42AI emerges from stealth with $62.5 million in seed financing

The Israeli startup says 10 large brokerages are using its behavioral prediction system. Its founders and Infinity Group supplied the funding over three years.

Illustration of behavioral data models alongside financial trading screens
Photo: TechCrunch

Israeli startup 42AI has emerged from stealth after securing seed financing totaling $62.5 million over three years from its founders and Infinity Group. The company is developing an artificial intelligence model that it says estimates how individuals will respond to different circumstances, initially targeting financial brokerages.

CEO and co-founder Amit Gal-Or said the financing was not entirely supplied by outside investors. Infinity was founded by his father, Amir Gal-Or, who also serves as 42AI’s chairman and co-founder. The startup plans to seek additional funding.

Amit Gal-Or said 10 large brokerages use the system to manage their liquidity needs, margin obligations and exposure through hedging. Customers pay either a fixed charge or a share of the value the platform generates for them.

According to 42AI, its system examines customer activity, including transactions, onboarding and support conversations, to represent psychological tendencies mathematically. A transformer-based model then estimates the likelihood of different decisions, while a separate language model explains its predictions.

The company claims 98% accuracy in predicting market trades, but Gal-Or said that figure measures whether trading flows remain within an anticipated range, rather than whether individual trades are correctly forecast. He also reported F1 scores of 0.8 to 0.85 for predictions of trading direction and volume.

The founders acknowledged that missing context, such as advice a trader receives from someone else, can reduce accuracy. Gal-Or said the system does not require personally identifiable information. Asked about potential misuse of customer predictions, the founders cited regulation, monitoring and an internal ethics committee, without explaining specific safeguards against customers exploiting those profiles.

42AI is also exploring gaming, fraud prevention and cybersecurity applications. CTO and co-founder Ehud Ezra said each additional field requires training on its particular rules and context.

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Lucas Almeida

Companies and Deals Editor

Edits and reviews corporate news (earnings, leadership changes, layoffs, product launches) and deal news (IPOs, mergers and acquisitions, buyouts and funding rounds).