Israeli AI firm AUI acquires Quack AI in push toward task-oriented systems
The deal, estimated at $15 million, doubles AUI’s Israeli R&D presence as the company focuses on structured AI execution.
Israeli artificial intelligence company Augmented Intelligence (AUI), the developer of what it describes as the world’s first neuro-symbolic AI model, has acquired Israeli startup Quack AI, a specialist in customer service automation.
Financial terms were not disclosed, though the deal is estimated to be in the region of $15 million. The acquisition is expected to double the size of AUI’s Israeli research and development team in Tel Aviv.
The transaction brings together two Israeli companies focused on enabling AI systems to reliably perform structured, task-based interactions on behalf of businesses.
AUI was founded in 2017 by Ohad Elhalel, its CEO, and Uri Cohen, chief product officer. The company has raised $60 million to date and employs approximately 60 people in Israel and the United States.
Its core product, Apollo-1, is described as the world’s first neuro-symbolic AI model. The system combines large language models (LLMs), which interpret user messages and generate responses, with symbolic computation, which governs logic and decision-making.
The distinction addresses a gap in current AI systems. While conventional LLMs have shown strong performance in open-ended dialogue and code generation, areas dominated by models such as ChatGPT, Claude and Gemini, they have struggled with deterministic, task-oriented conversations. These are interactions in which AI agents must follow strict rules and execute defined procedures, such as opening a bank account or completing an online purchase through guided dialogue.
By integrating symbolic computation with language models, AUI aims to enable AI agents to execute structured processes reliably, rather than merely generate plausible responses.
The company operates in strategic partnership with Google and serves enterprises in regulated industries including automotive, insurance, retail and e-commerce, among them Fortune 500 companies.
Quack AI was founded in 2023 by Nadav Kemper, CEO, and Aviram Roisman, chief technology officer. The 15-person startup raised approximately $7 million in a Seed round last September led by Hanaco Ventures and Storytime Capital, with participation from Fusion VC, Savyon Ventures, SeedIL Ventures and private investors, including Dan Adika, founder of WalkMe. The company also participated in the Fusion accelerator program.
Quack AI develops trainable AI agents designed for customer service environments. Its systems proactively identify and resolve customer issues before they escalate and can be trained to handle complex, specialized topics. The platform serves dozens of global customers, including Artlist, Yotpo, WalkMe and Hologram.
