Israel launches national AI supercomputer, ushering in new era of artificial intelligence development

The Israel Innovation Authority has recently announced a significant leap forward in artificial intelligence (AI) capabilities with the launch of a national supercomputer, a major component of its expanding National Artificial Intelligence Program. Nebius, a leading AI cloud provider, was selected to establish one of the world’s most advanced AI model training infrastructures, with an investment exceeding 500 million shekels, including 160 million shekels in government funding.

The supercomputer aims to democratize access to high-performance computing across Israel’s AI ecosystem—startups, academic researchers, and public sector innovators—by offering computing resources at an unprecedented scale and reduced cost. Nebius, a global technology company with Israeli leadership and operations across five countries, was awarded the project following a competitive proposal process.

The supercomputer forms the centerpiece of Phase II of Israel’s National AI Program and will be complemented by several flagship initiatives: the creation of a National AI Research Institute, support for large-scale "Moonshot" research projects, acceleration of AI deployment in government services, and programs to expand Israel’s pool of AI professionals.

A strategic national investment

“This is not just an investment in technology—it’s an investment in national security, economic growth, and the quality of life for all Israeli citizens,” said Minister of Innovation, Science and Technology Gila Gamliel. “The establishment of the national supercomputer and the launch of flagship AI projects mark a new and significant phase in Israel's ability to shape its future. We are building an independent and innovative infrastructure that will enable Israel not only to meet the challenges of the coming decade – but to lead it.”

Dror Bin, CEO of the Israel Innovation Authority, emphasized the strategic vision behind the initiative: “Artificial intelligence is a global growth engine, but also part of an international technological arms race. Israel is currently at the forefront of this race, but in order to maintain its competitive edge, it must continue to invest consistently in infrastructure, academia, and industry. The national supercomputer and the new flagship projects form the foundation for the next decade of Israeli high-tech. This is a defining moment: the supercomputer being built here in Israel will provide top-tier computing power to every researcher, entrepreneur, and company. Alongside national AI models, a government AI lab, and smart ethical policy, we are creating a complete ecosystem – with both vision and execution capability. Artificial intelligence is a technological and economic opportunity that will advance Israeli society, and we are here to ensure that Israel fully seizes this opportunity.”

Nebius’ winning proposal

Nebius’ proposal stood out by offering computing power four times greater than the required baseline, totalling approximately 16,000 petaflops. The company also committed to providing double the required volume of discounted computing power and aims to make the infrastructure operational by early 2026.

The proposed system will include a combination of hardware, software, and tailored services to meet evolving user needs. The company’s hybrid approach—combining physical infrastructure within Israel and a public-private access model—focuses on enabling early-stage research that might otherwise lack the resources to leverage high-end AI infrastructure.

A holistic national strategy

Alongside the infrastructure launch, Israel also released its 2025 AI Status Report. Compiled by the National AI Program Directorate, the report offers an in-depth overview of Israel’s current standing in global AI development, based on interviews, sector analyses, and international benchmarking. It reveals that while Israel excels in AI innovation and startup activity—raising approximately $15 billion in private investment over the past decade—public-sector adoption and preparedness for AI’s broader socio-economic impacts remain limited.

The report identifies key challenges and areas for growth, particularly the need to scale government involvement, prepare for sectoral disruption from generative AI, and ensure access to AI infrastructure for a wider base of users.

Moonshot projects and national AI Research Institute

Among the report’s strategic recommendations are the launch of “Moonshot” projects—large-scale, high-risk AI research initiatives developed through cross-sector collaboration. With a projected investment of 90 million shekels, these projects will focus on frontier technologies with potential for global impact.

The upcoming National AI Research Institute will serve as a hub for interdisciplinary research, aiming to attract international talent and foster academic-industry partnerships. It will capitalize on the supercomputer and new data infrastructure to position Israeli AI research at the forefront globally.

Data assets and human capital

The program also highlights the need to unlock innovation through sector-specific data repositories in fields such as agriculture, climate, and education. New frameworks will be implemented to consolidate fragmented datasets and ensure their secure, ethical use for R&D.

Despite Israel’s strength in AI human capital, the report underscores a critical talent shortage. New initiatives will include graduate scholarships, an AI-focused training track within the IDF, international talent recruitment, and upskilling opportunities for scientists and engineers.

Looking ahead

The National AI Program’s second phase sets a comprehensive course for Israel’s continued leadership in AI. With Nebius’ supercomputer as a foundation, the country seeks to foster innovation, strengthen resilience, and equip its economy and society for the transformational changes ahead.

As AI technologies reshape industries and everyday life, Israel is positioning itself not only as a startup nation but as a supercomputing and research powerhouse—ready to harness artificial intelligence for national and global benefit.

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