Israel rolls out tender for national quantum computer, and plans for advanced AI push

Plan aims to establish ‘Israeli technological sovereignty,’ provide a significant boost to the local high-tech ecosystem, and strengthen the country’s long-term competitiveness

Israel on Tuesday announced plans to advance the development of a national quantum computer, as countries around the world are vying for supremacy in what promises to be the new age of technology to solve significant scientific and engineering challenges in the years to come.

In a joint statement by the Prime Minister’s Office National Artificial Intelligence Directorate and the Finance Ministry Accountant General’s Department, Israel issued a tender to establish a locally produced quantum computer dubbed “Project Nexus.”

The stated goal of this step is to establish “Israeli technological sovereignty,” provide a significant boost to the local high-tech ecosystem, and strengthen the country’s long-term competitiveness. Beyond launching the tender — part of a government push on quantum computing and advanced AI — the announcement gave no details on budget or implementation timeline milestones.

Speaking at a Knesset committee meeting in July, Erez Askal, Director of the National AI Directorate estimated that implementing the national plan would require an annual budget of about NIS 5 billion ($1.66 billion). The Finance Ministry was not available for comment when contacted by The Times of Israel.

The advancement on the multi-year plan was announced less than a month after the Israel Innovation Authority said it would invest NIS 100 million ($33 million) to establish national infrastructure for research and development that will help local companies and universities test, evaluate, and adopt advanced quantum computing technologies.

Israel’s initiatives come amid a global race to develop quantum computing capabilities that serve national needs, and amid concern that the nation could be missing out, as major countries from the US to China step up investments into the next wave of technologies. The technology is still in its infancy, with tech giants like Google, Microsoft, IBM, and Intel seeking to build the next big thing and make quantum computing more workable and accessible.

“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, AI and computer science professor at Tel Aviv University and co-founder of Israeli-founded AI startup Imubit, told The Times of Israel.

“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.

Quantum computing harnesses quantum mechanics and abstract physics to perform numerous calculations at once to rapidly solve problems that are too complex for the most powerful classical computers to handle. Quantum processors promise computational horsepower that could lead to breakthroughs in the areas of economics, technology, security, engineering, and science, as well as in fields such as drug discovery, cryptography, and streamlining supply-chain logistics.

“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,” said Dr. Smadar Itzkovich, founder and CEO of AI & Quantum Sovereignty Lab (AIQ-Lab). “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?,” added Itzkovich.

Alongside the project for a domestic quantum computer, tenders and calls for proposals were issued for two additional national AI projects. The National AI Directorate seeks to establish a national physical AI – AI applied to robotics, manufacturing, healthcare and drones – testing ground for real-world simulations. The facility would allow researchers and companies test AI systems in real-world environments, such as highways, hospitals, manufacturing plants, and agricultural settings. The stated goal of the project is to drive breakthroughs in robotics, edge computing, sensing, and data processing.

The third national project aims to explore policies to bolster Israel’s capabilities to build foundation models, the large AI models behind advanced AI systems, such as ChatGPT, and ramp up the country’s competitive edge.

“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 believes Israel is unlikely to lead in general AI given the fast-evolving competition from the US and China.

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