Tzafon: Pioneering Human-Like AI Agents with Backing from OpenAI and xAI Angels

When angels from OpenAI and Elon Musk’s xAI invest in a young Israeli startup, it's a clear signal that something groundbreaking is happening. Tzafon, based in Tel Aviv with offices in Stockholm and the US, is developing technology that could revolutionize how machines reason and interact with humans.

Building Foundational Models for Seamless Computer Interaction

Tzafon is creating foundational models that enable AI to interact with computers just like humans do—clicking, scrolling, and inputting text. Their infrastructure supports autonomous AI agents that work together across operating systems, applications, and web browsers to tackle complex tasks. Recently, the company raised a $9.7 million pre-Seed round, with investments from key players at xAI and OpenAI.

The Tzafon team. (Photo: Tzafon)

A Strong Team and Vision Driving Interest

Mark Rogers, co-founder and CTO, attributes the investor interest to their exceptional team and vision. "They really liked our team and the idea of improving computer use with humans in the loop," he said. Tzafon employs 15 people, including alumni from DeepMind, Palantir, and Character AI, and emphasizes a lean startup approach with highly paid, top-tier engineers.

The Rise of AI Agents and Tzafon's Unique Edge

AI agents are autonomous systems that perceive, reason, and act without constant human input. Analysts believe the next AI evolution lies in deploying models as agents for multi-step tasks. While companies like Adept and Inflection are in the race, Tzafon stands out with its cross-platform capabilities and explainability-first approach.

Co-founded in 2023 by Rogers and CEO Noah Löfquist, Tzafon is developing Lightcone, an agent that acts on behalf of users across apps and platforms. For example, it can book flights, process insurance claims, or prepare reports, interacting with interfaces just like a human assistant. Unlike text-based LLMs such as ChatGPT, Lightcone is designed to 'do the work' while enhancing explainability and trust.

Emphasizing Safety and Local Operation

Noga Bregman, a founding engineer, highlights that open models stored locally help ensure explainability and build trust. "We come from AI safety backgrounds and prioritize this in our discussions," she noted. The product runs locally on computers as a downloadable app, addressing concerns about data privacy and security.

Thriving in Israel's AI Ecosystem with Key Partnerships

Israel's robust AI and cybersecurity ecosystem provides a fertile ground for Tzafon. The startup has signed a significant partnership with Google Cloud to develop the next generation of agentic machine intelligence. This collaboration gives Tzafon access to compute resources, NVIDIA GPUs, Google Kubernetes Engine, BigQuery, and Google's full AI stack.

Originally securing $4.4 million led by Streamlined with Kakao VC and angels from OpenAI and xAI, an extension from HV Capital brought total funding to $9.7 million. With teams in Tel Aviv, Stockholm, and San Francisco, Tzafon continues to attract attention from major players, positioning itself to shape the future of AI beyond large language models.