Israel and the United States are preparing to launch a $200 million joint fund to support ventures in quantum computing and artificial intelligence. According to reports from Globes and The Jerusalem Post, the initiative is expected to begin in 2026 and continue through 2030, with $100 million in government funding allocated from each country. The program may also attract investment from the United Arab Emirates and Saudi Arabia.
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A Regional Tech Bridge
The fund is designed to strengthen regional collaboration, elevate Israel’s global tech position, and counter China’s expanding influence in quantum research. It would operate out of Tel Aviv and Arlington, Virginia, with possible support from the U.S. CHIPS Act.
Israel’s Institute for National Security Studies and AIQ-Lab are leading the proposal, promoting a tech alliance that connects the Abraham Accords nations with Central Asia. The goal is to combine Israel’s research edge, U.S. capital, and Gulf infrastructure into a regional tech ecosystem.
The Quantum Insider estimates that Israel has secured approximately $667 million in quantum sector funding and established 79 strategic partnerships. The country is particularly strong in software development for quantum systems, a key enabler of real-world adoption.
If approved, the fund will follow the structure of earlier U.S.-Israel research collaborations, such as the Binational Science Foundation. The format allows startups from both countries to co-apply for grants. One example is a potential partnership between Israel’s Quantum Source and California-based PsiQuantum.
A Quantum Strategy for the Long Term
China remains a central concern. The fund’s architecture includes tighter export control rules and intellectual property protections to limit Chinese access to key technologies. The U.S. has been applying similar restrictions across its international tech alliances.
Earlier this year, the White House, Quantinuum, and Al Rabban Capital announced a $1 billion venture between the U.S. and Qatar to fund quantum technology development, underscoring the scale and urgency behind these efforts.
The next step is legislative approval. If successful, the fund could position Israel as a core partner in a broader U.S.-led strategy to secure leadership in quantum and AI innovation. The combination of Israeli innovation, American policy support, and Gulf capital could create a powerful platform for long-term technological growth.
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