AUI Acquires AI Customer Service Firm Quack AI

AUI, the company behind the neuro-symbolic AI model Apollo-1, has acquired Quack AI. Quack AI developed specialized technology for operating AI agents in customer service roles, and the acquisition is expected to significantly enhance AUI's capabilities in this area.

- AUI was founded in 2017 by Ohad Elhelo and Ori Cohen and has raised nearly $60 million in funding to date, including a $20 million funding round in late 2025 at a $750 million valuation cap. - The acquisition is set to double the size of AUI's research and development team in Tel Aviv. Quack AI, founded in 2023, brings a client roster that includes companies like Artlist, Yotpo, and WalkMe. - AUI's Apollo-1 model is a neuro-symbolic AI, which combines neural networks for understanding language with symbolic computation for logical decision-making. This hybrid approach is designed to provide more reliable and controllable AI agents for completing specific tasks, such as processing a payment or booking a flight. - Neuro-symbolic AI is seen as a key technology for advancing customer service because it can provide context-aware responses to complex user queries with more accuracy and consistency than chatbots that rely solely on large language models. - The market for AI in customer service was valued at over $12 billion in 2024 and is projected to grow to more than $73 billion by 2032 as companies increasingly adopt AI to provide 24/7 support and reduce operational costs. - Quack AI, founded by Nadav Kemper and Aviram Roisman, develops trainable AI agents designed to proactively identify and resolve customer issues before they escalate.

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