Tech brief
Israel's AI Infrastructure Pivot: Big Bets on Inference, Cloud, and Compute
Tech giants and global funds reallocate capital from software to hardware-level inference and sovereign cloud infrastructure.
Tech
Anthropic's $7B deal for Decart proves hardware-level inference optimization is the new frontier — making Tel Aviv engineers essential to scaling foundation models economically.
BackgroundDecart was founded in 2023 by Israeli military intelligence veterans specializing in low-level neural inference optimization across specialized silicon architectures. The company's software stack accelerates real-time generative video execution while cutting graphics processing unit (GPU) power consumption.
- Anthropic outbid competing takeover proposals from Nvidia, Google, and SpaceX to secure exclusive access to Decart's 100-engineer technical team, consolidating top inference talent under one roof.
- Co-founders Dean Leitersdorf, Orian Leitersdorf, and Moshe Shalev will retain a combined 64% equity stake, positioning them as major equity holders in the foundation model provider.
- The deal anchors Anthropic's core model optimization and real-time media generation efforts inside Israel, shifting the battleground from training models to running them cheaply.
Tech
Microsoft hiring Nvidia's top local executive reveals a sharp tactical pivot in Tel Aviv — swapping secondary consumer software projects for direct competition over enterprise AI compute.
BackgroundMicrosoft Israel underwent structural realignment after losing major government cloud tenders to competitors Amazon Web Services and Google Cloud. The tech giant recently closed its Tel Aviv LinkedIn research office to concentrate capital and talent on sovereign enterprise cloud expansion.
- Nati Amsterdam spent nearly a decade building Nvidia's Israeli presence, playing a central role in integrating legacy Mellanox networking operations across the region.
- The appointment follows Microsoft's decision to shutter its Tel Aviv LinkedIn development facility, reallocating regional resources directly into high-margin enterprise cloud infrastructure.
- Amsterdam will focus on regaining lost enterprise market share while expanding localized compute capacity for defense, health, and financial sector clients.
Tech
SoftBank is putting national security expertise at the core of its AI strategy — relying on former intelligence leadership to secure power, land, and chips across volatile global jurisdictions.
BackgroundYossi Cohen joined SoftBank Vision Fund in 2021 to lead investments in Israeli cybersecurity unicorns, including Wiz and Claroty. SoftBank is now shifting its portfolio strategy away from early-stage software startups toward physical AI power infrastructure and semiconductor fabrication.
- Cohen will oversee capital allocation for gigawatt-scale AI data center campuses, custom chip architecture partnerships, and complex utility power agreements.
- The promotion highlights SoftBank's strategy of reallocating capital from early venture bets toward heavy physical infrastructure required for frontier AI models.
- Cohen will leverage his international diplomatic and intelligence network to navigate cross-border regulatory approvals and national security reviews for mega-data center builds.
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