Billionaire investor Bill Ackman, one of Wall Street's most prominent figures and an outspoken supporter of Israel since the October 7 Hamas terror attack, has a message for Prime Minister Benjamin Netanyahu ahead of Israel's elections: break with Finance Minister Bezalel Smotrich and National Security Minister Itamar Ben-Gvir and form a moderate centrist government.
"Overall, Netanyahu has done a good job since October 7, but he has one major problem: his government, and particularly ministers Smotrich and Ben-Gvir," Ackman said in an interview with ynet and Yedioth Ahronoth's Mammon financial supplement. "They are doing serious damage to Israel and its reputation."
Ackman, founder and CEO of investment firm Pershing Square and whose personal fortune is estimated at about $12 billion, visited Israel last week for a short stay. The reason, he explained, was his Israeli wife, Neri Oxman, who wanted to vote in the upcoming elections.
Known for his willingness to challenge conventional wisdom and use his considerable wealth to advance public causes, Ackman has emerged as one of Israel's most vocal defenders in the American business community. Unlike many of his Wall Street peers, he publicly sided with Israel immediately after October 7 and has repeatedly confronted its critics.
He shares President Donald Trump's favorable assessment of Netanyahu's leadership and has also expressed exceptionally strong praise for Trump's support of Israel. But his admiration for the prime minister does not extend to all members of the Israeli government.
According to Ackman, extreme statements by Smotrich and Ben-Gvir are attributed not only to the ministers themselves but to the entire Israeli government, damaging the country's standing abroad, including in international business circles.
He urged Netanyahu not to include either minister in his next coalition if he returns to office. "After the elections, Israel needs a moderate centrist government," he said. "Israel will thrive only under a centrist coalition."
From Wall Street to the battle over American universities
Ackman's outspoken support for Israel has extended far beyond politics and financial markets. Following the wave of pro-Palestinian demonstrations at prestigious American universities, which he viewed as antisemitic and supportive of Hamas, he launched a public campaign against university leaders, particularly the president of Harvard.
He accused administrators of failing to confront violent protesters and turning a blind eye to demonstrations that, in his view, effectively called for Israel's destruction. As a major donor who has contributed hundreds of millions of dollars to higher education, Ackman demanded leadership changes.
His campaign was part of broader pressure on university administrations that preceded the resignation or removal of several university presidents, including Harvard's.
Ackman now believes the situation has changed considerably. "I visited Harvard this month and found major improvements in all the areas I had raised," he said.
Bill Ackman to Netanyahu: Form centrist government without Smotrich and Ben-Gvir
(Photo: REUTERS/Amir Cohen)
According to Ackman, political activism on campuses has receded, anti-Israel demonstrations have declined significantly and leading American universities are returning to their central mission as institutions of teaching and research.
He also views unrest in France as a warning about the consequences of socialist economic policies, reflecting his broader belief that excessive government intervention can undermine economic growth.
‘There is no AI bubble’
On the economic front, Ackman is notably optimistic about the artificial intelligence revolution and dismisses fears that the technology will trigger widespread unemployment or a major financial crisis.
"AI will not cause mass unemployment," he said. "Demand for high-tech workers will not decline. What will change is the mix and range of skills required."
He is equally unconcerned about the enormous stock market valuations of companies investing heavily in artificial intelligence, rejecting suggestions that the sector has entered a speculative bubble that is about to burst.
"There will be fluctuations, as there always are during economic revolutions," he said. "But the result of adopting AI will be a boom, improved productivity and economic growth. This is not a bubble, and I don't see a financial crisis on the horizon."
Asked whether relatively high interest rates in American financial markets signal growing risks, Ackman offered another reassuring assessment.
"No. We've simply become spoiled. We got used to extremely low interest rates and thought that was normal," he said. "But given the current pace of expansion in the American economy, a 5% yield on government bonds is perfectly normal."
In his view, the scale of investment in innovation and technological infrastructure demonstrates the underlying strength of the U.S. economy. He argues that American flexibility, openness and relatively limited government involvement will allow businesses to adapt quickly to the AI revolution.
Ackman points to new businesses opening in New York despite the election of Zohran Mamdani as mayor. His assessment of Europe, by contrast, is considerably darker, largely because of what he regards as excessive regulation.
A personal connection to medical innovation
During his visit to Israel, Ackman attended a conference on artificial intelligence and advanced medical technology organized by Sheba Medical Center, one of Israel's leading hospitals.
Sheba recently announced an agreement with an American company involving ARC Global, its international healthcare innovation network, which operates across roughly 300 hospitals in about a dozen countries and invests in companies with a combined estimated valuation of $7 billion.
Ackman has a particularly personal interest in the potential applications of artificial intelligence in brain research. His daughter suffered a stroke, an experience that has shaped his involvement in efforts to advance neurological research and treatment.
Sheba Medical Center Director General Prof. Yitshak Kreiss hopes the relationship could lead to cooperation and open new possibilities for families of people who suffered severe injuries during the war.
‘Israel is on its way up’
Despite his prominent public support for Israel, Ackman has not previously invested directly in Israeli high-tech startups. That, he now says, is about to change.
In the interview, he disclosed plans to invest significant sums in Israeli startups, expressing strong confidence in the country's technological capabilities and long-term economic prospects.
"Israel is one of the strongest and fastest-growing economies in the world, and it is on its way up," he said.
Ackman's optimism extends beyond the technology sector. He believes that the joint efforts of the United States and Israel against Iran could eventually reshape the regional economic landscape.
"When the United States and Israel complete their joint work in Iran, Israel can expect an enormous peace dividend," he said. "Saudi Arabia is next in line for normalization, and other countries will follow."
For Ackman, Israel's technological potential and prospects for regional normalization offer grounds for confidence in its future. But his political message remains pointed: despite his praise for Netanyahu's leadership and his willingness to invest in the Israeli economy, he believes the composition of the next government will have consequences for Israel's international reputation and prosperity.