AI Pioneer Amnon Shashua Seeks Buyer for Digital Bank ONE ZERO
Translated & summarized from Globes by baba
Professor Amnon Shashua, founder of the digital bank ONE ZERO, is seeking to sell his controlling stake in the institution, which has accumulated nearly 1.4 billion shekels in losses since its founding. Shashua is shifting his focus to his AI startup, doubleAI, which has achieved significant technological breakthroughs. The search for a buyer for ONE ZERO is being managed by EY Capital Markets, with potential investors likely from the financial sector. The bank has recently undergone a 10% staff reduction as part of efficiency measures.
The story in 5 lines · by baba
- Amnon Shashua is selling his controlling stake in the digital bank ONE ZERO, which has lost 1.4 billion shekels.
- Shashua is increasing his focus on his AI startup, doubleAI, which has achieved significant breakthroughs.
- EY Capital Markets is managing the sale of ONE ZERO, valued at over 1 billion shekels.
- ONE ZERO has reduced losses and increased revenue but still faces financial challenges.
- Potential buyers for ONE ZERO are expected to come from the financial sector.
Professor Amnon Shashua, founder of the digital bank ONE ZERO, is actively seeking a buyer for a controlling stake in the institution. Shashua, who holds approximately 60% of the bank's shares, is looking for an investor with substantial capital to meet the ongoing funding needs of ONE ZERO. Since its inception, the bank has "burned" through about 1.4 billion shekels of investor funds, with Shashua being the primary source. EY Capital Markets is managing the search for a new investor, with the bank's valuation in this potential deal estimated at over 1 billion shekels.
Shashua's move away from controlling ONE ZERO aligns with his increased focus on his AI startup, doubleAI. Recently, doubleAI announced a significant breakthrough: its AI agent successfully modified a Chinese language model, DeepPsi, during operation. This achievement, which allows for real-time AI model training, is considered a major advancement, with companies like OpenAI also pursuing similar capabilities. DoubleAI, founded three years ago, has already secured $220 million in investments from major players like Nvidia and Lightspeed, achieving unicorn status and becoming Shashua's primary focus.
The digital bank ONE ZERO, established in 2019 and fully operational since 2022, aimed to challenge traditional banks with attractive deposit rates, new fee structures, and AI-driven digital services. However, profitability has been elusive due to high development costs and operating on a relatively small scale in a competitive market. While the bank has seen growth in net interest income and a reduction in losses, its cumulative deficit since founding stands at nearly 1.4 billion shekels. In response to financial pressures, ONE ZERO recently implemented a cost-saving measure, laying off 10% of its staff.
Market sources suggest that ONE ZERO's potential profitability in the coming year could make it an attractive entry point for a new controlling shareholder. Potential investors are expected to come from the financial sector, attracted by the bank's established operations, investments, and license from the Bank of Israel. While investment firms like Meitav and credit card companies such as Isracard and Cal have reportedly considered or explored investments in ONE ZERO, no definitive deal has been announced. Other potential interested parties mentioned include Moti Ben-Moshe and the Schneidman family.
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