Israel Boosts Quantum Sector With New Plan Following Major Investments
Israel's Innovation Authority and partner agencies have invested 1.25 billion shekels in quantum tech, paving the way for a new national program focusing on software and error correction amid booming startup growth.
Over the past five years, the Israel Innovation Authority, MAFAT, and the Planning and Budgeting Committee have invested approximately 1.25 billion shekels in the quantum sector, including 500 million shekels allocated by the Innovation Authority to private companies, academic laboratories, and research consortia. The Authority has now drafted a recommendation for a new governmental program to be submitted for approval to the cabinet and the Budget Directorate.
According to data published by local media, the Israeli quantum sector currently employs over 1,000 workers and has raised more than 1 billion dollars in private capital across prominent firms such as Classiq, Quantum Machines, Quantum Art, Quantum Source, and Kadma. While the initial phase focused on academic research to develop qubits using cold atoms, trapped ions, and photons, the new program will prioritize software development and quantum error correction. Meanwhile, winners of the National Quantum Computing tender—backed by 200 million shekels in co-funding between the state and entrepreneurs—will soon be announced, and an additional 1 billion shekels will be channeled through the National AI Directorate by 2030 to procure industrial quantum computers.
Quantum computing relies on unique physical principles such as superposition and entanglement, utilizing qubits capable of representing multiple states simultaneously, unlike traditional binary bits limited to 0 or 1. This capability delivers exponential computing power capable of solving complex problems within minutes—ranging from drug discovery and novel materials to cybersecurity, encryption, and the optimization of massive systems that traditional silicon computers cannot crack.
Discussions between senior executives at Bank of America indicate that combining artificial intelligence with quantum computing could significantly accelerate the pace of scientific and technological development, advancing the transition from artificial general intelligence to superhuman artificial intelligence, and potentially bringing the singularity closer.
Israel features a thriving quantum ecosystem comprising over 20 startup companies operating across various technology layers, from hardware and processors to control systems, software, and cybersecurity. Among them is the Israeli technology firm Classiq, which was recently acquired by chip giant Intel for 2.3 billion dollars.
Another prominent player is Quantum X Labs (QXL), which recently appointed former Mossad chief Yossi Cohen as president of its scientific advisory board. Established roughly four years ago by Prof. Nir Sharon and Yaki Barnes, QXL pursues a full-spectrum approach spanning software, hardware, applications, and sensing rather than focusing on a single niche.
