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Afternoon Brief · November 2nd 2026

42AI comes out of stealth with $62.5 million and a model that predicts what traders will do

42AI, an Israeli startup, says its "behavioral world model" estimates how likely a person is to make a particular decision, starting with how retail traders react to volatile markets. It infers psychological traits from onboarding data, support calls and trading history, and about ten large brokerages use it to set margin and hedge their exposure; one reportedly gained about $30 million from it. Revenue is "seven figures." The $62.5 million seed came from the founders and Infinity Group, which the chairman, Amir Gal-Or, founded, so this is mostly the family's own money. The company claims 98% accuracy on trading flows, meaning flows landed inside a predicted range.

The CTO called the risk of a broker using the model against its own customers "a valid concern" and pointed to regulation and an ethics committee, without saying what stops it. SourcesB

Sources

This story ran in the Afternoon Brief of November 2nd 2026.