Israel and America Up Their AI Collaboration
By Paul Steidler: The United States and Israel have long, close, informal ties between our tech sectors, and that relationship is poised to grow soon, with a special focus on AI. Two recent events are of particular note.
On January 16, senior U.S. and Israeli officials announced in Jerusalem “a new strategic partnership on artificial intelligence, research and critical technologies, underscoring the two allies’ intent to deepen cooperation in fields increasingly seen as central to national security and economic power.”
Israeli National AI Agency Director Brig. Gen. Erez Askar said this will include “establishment of joint U.S.-Israel applied AI laboratories in Israel. The labs are intended to allow researchers and companies from both countries to develop and test advanced AI systems using shared data and infrastructure.”
Since 2013, more Israeli AI companies have attracted investor financing than any country in the European Union (EU). 2025 was an especially strong year for Israel’s tech sector.
On January 18, Bloomberg reported that the country’s tech companies raised more than $15.6 billion in 2025, and exits (acquisitions or initial public offerings) were 300 percent higher than in 2024.
Bloomberg also reported that 450 tech multinational companies have set up operations in Israel. Ely Razin, Chief Strategic Officer at the global venture capital fund OurCrowd, told Bloomberg his organization has a three-part fund which he describes as “between the US, Israel, and (South) Korea for not just developing or designing deep tech but being able to produce it in partnership with strong partners in Korea and in the U.S.”
Gulf countries investing in Israeli tech include Bahrain, the United Arab Emirates, and Saudi Arabia. Israel has more tech companies listed on America’s NASDAQ than any other country except for the U.S., China, and Japan.
As the U.S. continues to face hostility from the EU and its governing body, the European Commission, on tech investments and U.S. tech companies’ operations in the EU, the strengthening tech alliance between the U.S. and Israel is a welcome development. The alliance should also serve as a model for how other countries can work with America on AI, which will be important if America and our allies are to prevail in the AI race versus China.