Israel announced a major artificial intelligence infrastructure initiative on Wednesday, unveiling plans for a new National AI Supercomputer to be developed by Nebius.
The project, with an investment exceeding half a billion shekels (approximately $135 million)—including 160 million shekels ($43.24 million) in government funding—marks Phase II of the country’s National Artificial Intelligence Program.
Nebius, which was founded by Arkady Volozh, the Russia-born former CEO of Yandex, operates a major research and development center in Tel Aviv. Volozh, who became an Israeli citizen under the Law of Return in 2017, has been based in Israel in recent years.
Selected from among four competing proposals, Nebius has committed to delivering computing power four times greater than the program’s baseline, offering a capacity of 16,000 petaflops, according to the Israel Innovation Authority.
Slated to begin operations in early 2026, the supercomputer is designed to make high-performance AI training more accessible and affordable for Israeli startups, academic researchers and public-sector innovators.
Israeli Innovation, Science and Technology Minister Gila Gamliel hailed the initiative as a strategic investment in the nation’s future.
“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 Gamliel. “It 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, called the move a “defining moment” in the evolution of Israel’s tech ecosystem, which also includes national AI models, a government AI lab and emerging ethical AI policy frameworks.
“Artificial intelligence is a global growth engine, but also part of an international technological arms race,” said Bin. “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.”
Coinciding with the announcement, the IIA released its 2025 AI Status Report, which highlighted rapid growth in the country’s AI sector, including nearly $15 billion in private investment over the past decade. The report also pointed to a shortfall in AI integration across government and society, urging accelerated national preparedness to address AI’s sweeping impacts.
To help close that gap, the government is launching several complementary initiatives: the establishment of a National AI Research Institute, “Moonshot” AI research programs, sector-specific data repositories and talent development efforts—including AI training within the Israel Defense Forces and international recruitment campaigns.
“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,” said Bin.
