Israel is moving into one of the world’s most competitive technology races, launching a national effort to develop quantum computing infrastructure, advanced artificial intelligence systems and the next generation of AI-powered machines.
The National Artificial Intelligence Directorate at the Prime Minister’s Office, together with the Accountant General’s Division at the Finance Ministry, announced a series of initiatives designed to advance Israel’s capabilities in quantum technology and artificial intelligence.
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Israel launches push to build quantum computer and lead Physical AI revolution
(Photo: Dima Karminsky)
The first major projects include “Project Nexus,” a tender to establish an Israeli-built national quantum computing platform, as well as programs to develop infrastructure for “Physical AI” and advance domestic AI models.
Officials said the goal is to strengthen Israel’s technological independence and maintain its position as a global innovation leader.
Building an Israeli quantum computer
Quantum computing represents a major shift from traditional computing.
While conventional computers process information using bits that represent either 0 or 1, quantum computers use quantum bits, or qubits, which can exist in multiple states simultaneously.
This allows quantum systems to analyze certain complex problems in ways that traditional computers cannot, potentially transforming fields such as cybersecurity, medicine, materials science and advanced simulations.
The global race to develop powerful quantum computers has become a strategic competition among major powers because of their potential impact on encryption, national security and communications.
A sufficiently advanced quantum computer could eventually threaten current encryption systems protecting financial networks, critical infrastructure and military communications.
Preparing for the era of Physical AI
Alongside quantum computing, Israel is also investing in what is known as Physical AI, a field focused on systems that can understand and interact with the physical world.
Unlike traditional AI systems that operate mainly through software, chatbots or screens, Physical AI combines artificial intelligence models with sensors, machines and robotics.
Applications could include humanoid robots, autonomous vehicles, smart medical systems, advanced manufacturing, agricultural robots and automated logistics.
As part of the initiative, Israel plans to establish a national testing environment that would allow companies and researchers to simulate real-world scenarios in areas including transportation, healthcare, manufacturing and agriculture.
The National AI Directorate has already issued a request for information to explore the creation of the testing platform.
Developing Israeli AI models
The government also launched a process to map Israel’s capabilities in developing foundation AI models, which are becoming a critical strategic resource.
The initiative aims to understand the local market’s strengths and identify areas where Israel can develop a competitive advantage.
“Israel is rapidly and professionally moving from defining vision and strategy to practical implementation together with government partners,” said Brig. Gen. (res.) Erez Eskel, head of the National AI Directorate.
“The steps we are launching are a central stage in ensuring our sovereign infrastructure while continuing to focus on Israel’s relative advantages for global leadership in the years ahead,” he said.
A new technology race
Officials view quantum computing and advanced AI as key strategic technologies that could shape the future balance of power between countries.
Quantum technology could enable highly secure communication networks, while Physical AI could transform industries ranging from transportation and healthcare to agriculture and manufacturing.
For Israel, the challenge is not only developing new technologies but ensuring that critical infrastructure, data capabilities and advanced AI systems remain under domestic control.
The government’s initiatives are still in their early stages, but officials say they represent a major step toward making Israel a significant player in the next wave of technological innovation.