ByTOBIAS HOLCMAN

AUGUST 6, 2026 16:09

Israel intends to channel its development resources into quantum computing and physical artificial intelligence, seeking to rank among the world's top nations in these domains, the Prime Minister's Office National AI Directorate and the Finance Ministry Accountant General's Department stated on Tuesday.

The initiative centers on creating a domestically built quantum computer through the new Project Nexus while also funding physical AI applications that apply intelligence to practical, real-world operations.

The move stems from Government Decision 4255 and the broader national AI strategy, marking the first concrete projects led by the National AI Directorate.

Government Decision 4255 seeks to place Israel at the cutting edge of global AI progress. Our mission involves speeding up AI growth across the country, moving rapidly and expertly from strategy to real-world execution alongside government partners, said Brig.-Gen. (Res.) Erez Eskel, Director of the National AI Directorate.

The actions now underway form a key step in building sovereign infrastructure while leveraging Israel's strengths for sustained international leadership, he noted.

Close cooperation between the Accountant General's Department and the National Directorate allows us to convert policy into binding contracts that deliver needed infrastructure, observed Senior Finance Ministry Deputy Accountant General for Innovation and Technology Evyatar Peretz.

A Request for Information will soon be issued to boost Israeli control over foundational models, foster national leadership, assess industry strengths, and identify ways to capitalize on the country's advantages.

Current efforts spanning quantum systems, physical AI, and foundational models give industry and the economy the base needed to reduce obstacles, protect technological independence, and drive global advances, Peretz added.

Quantum computing stays the central focus

Quantum computing has ranked among the government's top priorities since 2018, backed by multiple programs designed to position Israel among the five leading countries worldwide.

Notable outcomes include the first locally assembled quantum computer based on superconducting technology unveiled in 2024 and a recent partnership between Israeli startup Qedma and IBM to exceed the capabilities of today's most powerful supercomputers.

The IBM trial used a superconducting quantum chip featuring 72 physical qubits capable of running many calculations in parallel.

Physical AI gains momentum

Physical AI forms another key government focus, illustrated by autonomous drones and intelligent systems that optimize corporate energy consumption to cut electricity costs.

Arik Feingold, chairman and president of Commit, noted in June that the Israel Innovation Authority should next target these technologies.

This area highlights our strengths in planning, creativity, and integration, he stated.

Guiding the Innovation Authority to support deep-tech projects that connect AI with operations, manufacturing, and industry will safeguard ecosystem resilience amid current challenges and generate future economic growth engines, he continued.

Yonah Jeremy Bob and Assaf Gilead/Globes/TNS contributed to this report.