Israel’s Next Tech Moonshot is a National Quantum Computer

Israel has launched a tender to build a national quantum computer and unveiled two additional artificial intelligence initiatives as it seeks to strengthen its technological capabilities and remain competitive in the global race for advanced computing.

The Prime Minister’s Office National Artificial Intelligence Directorate and the Finance Ministry’s Accountant General’s Department says the tender, dubbed Project Nexus, aims to establish a locally built quantum computer as part of efforts to bolster what officials described as Israel’s technological sovereignty.

The government said the initiative is intended to strengthen Israel’s long-term competitiveness and support the country’s high-tech sector, but did not disclose a budget or implementation timeline.

The announcement comes less than a month after the Israel Innovation Authority said it would invest 100 million shekels ($33 million) to establish national quantum computing research and development infrastructure to help companies and universities test and adopt the technology.

Governments worldwide are increasing investment in quantum computing, which exploits quantum mechanics to perform calculations beyond the capabilities of conventional computers and is expected to have applications ranging from drug discovery and cybersecurity to logistics and engineering.

Speaking at a parliamentary committee meeting in July, National AI Directorate Director Erez Askal estimated that Israel’s broader national AI plan would require annual funding of about 5 billion shekels ($1.66 billion).

“Israel taking initiative and acting early on an emerging technology is a step in the right direction because we were very late when it comes to AI,” Nadav Cohen, a professor of AI and computer science at Tel Aviv University and co-founder of Israeli AI startup Imubit, said.

“But since we are not a superpower with endless resources, Israel needs to set national investment priorities and carefully choose the areas where we have the potential to lead, and focus on them as opposed to trying to be good at everything,” he said.

“It might be too early to put quantum computing at the top of our list as it’s a very long-term scientific effort and it’s not so clear what the tangible fruit will be even in a few years, with some people saying that it will never happen,” Cohen cautioned.

Israel’s announcement comes as countries including the United States, China, Britain and Japan step up investment in quantum technologies, while companies such as Google, Microsoft, IBM and Intel compete to commercialise quantum computing.

Dr. Smadar Itzkovich, founder and chief executive of AI & Quantum Sovereignty Lab, welcomed the move.

“I think this is a smart and bold move by the government — launching a tender like this for a technology that’s still emerging takes courage,” she said. “It places Israel alongside Japan and the UK, which made similar moves this year.”

“What interests me most going forward is thinking about what Israel’s big vision is for advancing the quantum field?,” she added.

Alongside Project Nexus, the government issued tenders for two national AI initiatives. One seeks to establish a national testing facility for physical AI applications in robotics, manufacturing, healthcare and drones, allowing researchers and companies to evaluate AI systems in real-world environments including highways, hospitals, factories and farms.

The second project will examine policies to strengthen Israel’s ability to develop foundation models, the large AI systems that underpin applications such as ChatGPT.

“The steps we are leading today – from quantum computing to Physical AI and foundational models – provide the industry and the economy with the necessary foundation to lower barriers, ensure technological sovereignty, and make global breakthroughs,” said Senior Finance Ministry Deputy Accountant General for Innovation and Technology Evyatar Peretz.

Cohen said Israel was unlikely to emerge as a leader in general-purpose AI given intense competition from the United States and China, but could carve out an advantage in applied AI.

“Combining defense, academia, and startups could make us leaders in physical AI – not today, but within three to five years,” he said.

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