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Israel's artificial intelligence (AI) sector has attracted the interest of global tech giants, who acquired ** Israeli companies in 2023. By comparison, ** AI companies from the United States, and ** from Europe were purchased over the same period. The country maintained a high ratio of AI mergers and acquisitions (M&A) relative to other regions in the world. These acquisitions by industry giants like NVIDIA, Google, and Salesforce, highlight the country's role as a hub for AI innovation and talent.

Global AI market growth and investment

The global AI market is poised for substantial expansion, with projections indicating growth from over *** billion U.S. dollars in 2023 to over *** billion U.S. dollars by 2030. This rapid growth is driven by AI applications across various industries, from software to logistics and pharma. In Israel, AI companies are attracting significant capital investment, with Run:AI leading the pack, following its acquisition by NVIDIA. Other notable Israeli AI firms like OptimalPlus and Cellwize have also secured substantial investments. 

AI ecosystem and international presence

The Israeli ecosystem benefits from a high concentration of multinational corporations (MNCs) within the country, active in AI. As of the first quarter of 2024, approximately ** percent of MNCs operating in Israel were engaged in AI-related fields. Beyond their involvement in the local AI exit market, they also play an important role in R&D workforce development. These developments underscore Israel's growing influence in the global AI industry and its ability to attract investment from major international players.