Jerusalem, 7 September, 2026 (TPS-IL) — Israel’s high-tech sector saw an unprecedented surge in AI investment in 2025, with AI companies attracting approximately $11.8 billion, or 89% of all high-tech investments in the country, according to DatA-IL is a joint initiative of the Ministry of Economy and Industry, the Israel Innovation Authority, the National Digital Directorate, and SFI Group.
Israel is emerging as a global technology leader, ranking first in academic-industry collaboration and AI talent concentration. Nearly 3,000 AI companies now operate in the country, accounting for about one-third of all Israeli high-tech firms.
There are currently 2,948 AI companies operating in Israel, accounting for about one-third of the country’s high-tech companies. Of these, 365 are classified as core AI companies, independently developing infrastructure, language models, and foundational technologies.