Israeli AI Firm AUI Acquires Quack AI to Strengthen Task-Oriented Systems

Quack AI specializes in customer service automation, and the acquisition is expected to strengthen AUI’s capabilities in AI-driven customer support solutions.

The financial details of the deal were not shared, but it is estimated to be worth around $10 million.

The acquisition is expected to double the size of AUI’s research and development team in Tel Aviv, Israel.

The deal brings together two Israeli companies that focus on helping AI systems handle structured, task-based interactions for businesses in a reliable way.

AUI was founded in 2017 by CEO Ohad Elhalel and Chief Product Officer Uri Cohen. So far, the company has raised $60 million in funding and has around 60 employees working in Israel and the United States.

Most traditional large language models (LLMs) perform very well in open conversations and tasks like writing code. However, they often struggle with structured, task-based interactions. These are situations where AI must follow clear rules and complete specific steps — such as helping someone open a bank account or finish an online purchase through guided instructions.

AUI combines symbolic computation with language models to solve this problem. This approach helps AI agents follow strict processes and complete tasks accurately, instead of just generating responses that sound correct.

Quack AI was founded in 2023 by CEO Nadav Kemper and Chief Technology Officer Aviram Roisman. The 15-member startup raised around $7 million in a Seed funding round last September.

The round was 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.

In addition to raising funds, Quack AI also took part in the Fusion accelerator program, which supports early-stage startups in scaling their products and business operations.

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