42AI, an Israeli startup, came out of stealth on November 2 with $62.5 million in seed funding and a behavioral world model it says can estimate how people will respond to situations, including ones they have not faced before. Its first market is financial brokerages, which use 42AI to predict how individual traders react when markets turn volatile.
The $62.5 million came from the founders and Infinity Group over three years rather than from outside venture firms, and 42AI plans to raise more. Amit Gal-Or is CEO and co-founder, Ehud Ezra is CTO and co-founder, and Amir Gal-Or, who founded Infinity Group, is chairman and co-founder. Dan Shechtman, the 2011 Nobel laureate in chemistry, is an advisor.
42AI spent three years combining psychological research, neuroscience and genetics. 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 now cover nearly 30 million people.
Key facts
- 01Israeli startup 42AI emerged from stealth on November 2, 2026, with $62.5 million in seed funding.
- 02The $62.5 million came from the founders and Infinity Group over three years; 42AI plans to raise more.
- 0342AI works with 10 large brokerages on liquidity, margin requirements and hedging exposure.
- 04One brokerage reportedly gained about $30 million in additional value through dynamic hedging.
- 0542AI reports an F1 score of 0.8 to 0.85 for predicting trading direction and volume.
The model is already in commercial use at 10 large brokerages, which apply it to liquidity, margin requirements and hedging exposure. Gal-Or put revenue at seven figures without giving a specific number. One brokerage reportedly gained about $30 million in additional value through dynamic hedging, and customers pay either a flat fee or a percentage of the value gained.
42AI cites a 98% accuracy figure for market trades. Gal-Or clarified that the number measures whether trading flows fall within a predicted range, not whether each individual trade was called correctly. For predicting trading direction and volume, the company reports an F1 score of 0.8 to 0.85.
“Behavior is not deterministic; it's constantly probabilistic”— Amit Gal-Or, CEO and co-founder of 42AI
On privacy, Gal-Or said "the model never knows who the person is."
42AI is exploring gaming, fraud prevention and cybersecurity next, with a longer-term goal of helping robots and AI agents understand people. Ezra said each new domain requires training on its own rules and context.
Ezra called the possibility of brokerages using the predictions against their own customers "a valid concern." The founders pointed to regulation, monitoring and an internal ethics committee as safeguards.
Gal-Or also described a limit on how far the approach can go: "There's a natural ceiling because you really don't have access to everything that a person experiences."
Working on something we should cover, or seeing a story we missed? Send leads, documents, or feedback to hello@aichatdaily.com. For sensitive tips, see our secure tips page for Signal and PGP options.
Spotted an error? Email hello@aichatdaily.com with the URL and the issue, or read our full corrections policy.
