M12, the corporate venturing subsidiary of software provider Microsoft, has elected to sell its stake in Israel-based artificial intelligence technology provider AnyVision due to concerns over its use in facial recognition.
AnyVisios had developed image recognition software that can be used with any camera to precisely identify objects, faces and bodies, and had closed a $74m series A round featuring M12 in June 2019.
Microsoft had been carrying out an audit since October to determine whether the system was breaching its pledge on facial recognition by being used for mass surveillance of Palestinian citizens in the disputed West Bank territory.
The audit concluded that the technology was being utilised at border crossings but did not find evidence of a mass surveillance system as reported in the media.
However, Microsoft concluded that it will no longer invest in facial technology developers, as it is unable to ensure its ethical use as a minority shareholder, and agreed with AnyVision to divest its stake.
Qualcomm Ventures, the investment arm of mobile chipmaker Qualcomm, also backed the series A round, as did industrial technology and appliance producer Robert Bosch, holding company Ofer Group’s OG Technology Partners unit, Eldridge Industries, DFJ Growth and LightSpeed Venture Partners.
