Augmented Intelligence (AUI), the company behind what it describes as the world’s first neuro-symbolic artificial intelligence model, said it has acquired Quack AI, a startup that develops AI-powered customer service agents, in a move expected to significantly expand its research and development operations in Israel.
Financial terms of the deal were not disclosed. AUI said the acquisition is expected to double the size of its Israeli R&D team in Tel Aviv.
Quack AI was founded in 2023 by CEO Nadav Kemper and CTO Aviram Roisman and employs 15 people. The company participated in the Fusion accelerator program and raised about $7 million in a seed funding round led by Hanaco Ventures and Storytime Capital, with participation from Fusion VC, Savyon Ventures, SeedIL Ventures and private investors, including Dan Adika, founder and CEO of WalkMe.
Quack AI develops trainable AI agents designed to help companies improve and automate customer support. The agents are built to proactively identify and resolve customer issues before they escalate, and can be trained to handle complex topics that require specialized expertise. The company’s platform serves dozens of global customers, including Artlist, Yotpo, WalkMe and Hologram.
AUI said Quack AI’s customers will continue to receive full and uninterrupted service, now supported by AUI’s infrastructure, resources and technology.
AUI was founded in 2017 by CEO Ohad Elhalel and Chief Product Officer Uri Cohen and has raised $60 million to date. The company developed Apollo-1, a neuro-symbolic AI model that combines large language models, used to understand user messages and generate responses, with symbolic computation, used for decision-making and logical execution.
According to AUI, this hybrid approach enables its system to manage task-oriented conversations in which AI agents must perform actions on behalf of organizations, such as opening a bank account or completing an online purchase through natural dialogue. Such structured, instruction-based interactions have remained a challenge for standard large language models, the company said, compared with open-ended dialogue or code generation tasks commonly handled by models such as ChatGPT, Claude and Gemini.
AUI operates in partnership with Google and serves companies across regulated industries including automotive, insurance, retail and e-commerce, among them Fortune 500 firms. The company employs about 60 people in Israel and the United States.