Key facts
- 42AI said its model reached 98% accuracy on market trades, a measure of whether flows fell within a predicted range.
- Co-founder Amit Gal-Or said the model achieves an F1 score of 0.8 to 0.85 for predicting trading direction and volume.
- Gal-Or said 42AI is working with 10 large brokerages using it for liquidity, margin requirements and hedging exposure.
- Gal-Or said 42AI generates more than seven figures in revenue and claimed one brokerage gained about $30 million in value through dynamic hedging.
- Gal-Or said customer datasets cover almost 30 million people, after government and biobank data covering more than 2 million.
- Infinity Group, founded by chairman and co-founder Amir Gal-Or, contributed to the seed round alongside the founders.
Israeli startup 42AI said it came out of stealth with $62.5 million in seed funding for a "behavioral world model" that it says predicts how people will act, including in situations they have not faced before. The company said it initially runs the system at a handful of financial brokerages, where it is used to predict how individual traders respond to volatile conditions.
CEO and co-founder Amit Gal-Or told TechCrunch that behavior is "not deterministic; it's constantly probabilistic," arguing that people carry underlying tendencies that shape decisions even when circumstances change. CTO and co-founder Ehud Ezra said the model looks at interactions such as support calls, onboarding, money transfers and trading activity, and converts observations into mathematical representations fed into a transformer-based world model.
Gal-Or said the team first studied thousands of people through psychological assessments and behavioral scenarios, then added government and biobank datasets covering more than 2 million people. Customer datasets have since grown to cover almost 30 million people, he said, adding that the system does not need personally identifiable information.
42AI claims 98% accuracy in predicting market trades, which Gal-Or said measures whether trading flows fall within a predicted range rather than whether each trade was called correctly. He also cited an F1 score of 0.8 to 0.85 for predicting trading direction and volume. Gal-Or said the model has a natural ceiling because it cannot access everything a person experiences, and Ezra said accuracy suffers when situational context is missed.
Gal-Or said 42AI works with 10 large brokerages using it to manage liquidity, margin requirements and hedging exposure, and that the company generates more than seven figures in revenue. Customers pay a flat fee or a percentage of the value the platform helps them gain, and he claimed one brokerage generated approximately $30 million in additional value through dynamic hedging.
The $62.5 million seed funding came from the founders and Infinity Group over three years and was not entirely raised from external investors, Gal-Or said. Infinity was founded by his father, Amir Gal-Or, who is also 42AI's chairman and a co-founder. 42AI plans to raise more money.