42AI raises $62.5 million to develop behavioral AI models

Israeli startup 42AI has exited stealth mode, announcing a $62.5 million seed funding round. The company has developed a behavioral world model designed to predict the probability of individual decisions in unfamiliar scenarios.

The technology is currently being utilized by ten large brokerage firms to manage liquidity, margin requirements, and hedging exposure, reportedly generating millions of dollars in revenue. The system analyzes behavioral signals from client interactions, such as account openings, identity verification, customer service calls, and fund transfers, converting these into mathematical features for a Transformer-based model.

Co-founder and CEO Amit Gal-Or stated that the technology was developed over three years by integrating psychology, neuroscience, and genetics. The model has been trained on datasets covering nearly 30 million people. While the company claims a 98% accuracy rate for market trading predictions, Gal-Or clarified that this refers to whether order flows fall within a predicted range rather than predicting every individual transaction.