Opinion
The Next Arms Race: Why AI will outpace the nuclear arms race, and why Israel cannot afford to lose
"Israel can close the gap and become a global leader in AI, mirroring its success in cybersecurity technologies, thereby securing its position as a key player on the global stage," writes Dr. Micha Breakstone
In June 2024, Sequoia Capital led a $125 million funding round in Sakana AI, valuing the company at $1.1 billion. Founded just 11 months earlier, Sakana AI's valuation had soared nearly 400% in a mere five months. The company's mission is straightforward: to develop AI models specifically tailored for Japan. Sequoia's investment underscores the strategic importance and inherent value of socio-geographic, cultural, and language-specific focused AI solutions. For Israel, establishing local AI companies at the forefront of research and development is not only a highly lucrative economic opportunity but also a strategic imperative.
Andrew Ng, a leading AI researcher, declared in 2016: "Artificial Intelligence is the new electricity." Just as electricity transformed the 20th century, AI is poised to shape the next. If primitive humans' mastery of fire allowed us to conquer nature, and the invention of electricity accelerated the Industrial Revolution, AI will not only reshape entire industries but also create new realms of knowledge and forge a reality beyond any previous human invention.
Unlike electricity, which became a widely available commodity through time and infrastructure development, AI remains far less accessible. It requires top-tier scientists and billions of dollars in well-managed research projects, investments that can only be funded by sovereign entities. Countries that successfully leverage AI as a resource will gain significant strategic advantages. In this sense, AI is more akin to nuclear weapons development, which, 80 years after its invention, remains in the hands of only nine countries, providing them with substantial strategic and deterrent capabilities.
While the nuclear arms race entailed mutual destruction and consequently reduced it to a form of psychological warfare, the AI race offers tangible and immediate benefits. AI advantage enables a country to enhance security capabilities such as intelligence analysis, missile launch and interception systems, battle management, and more. Additionally, AI holds immense civilian growth potential, impacting all areas of life—from communication and healthcare to transportation, economy, and national security.
As noted, in contrast to nuclear technology, AI advancements can be applied immediately without the risk of global annihilation. This dynamic mirrors the Industrial Revolution, where early adopters of industrialization rapidly outpaced their non-industrialized counterparts. In the AI era, however, these developmental gaps are poised to widen exponentially faster, quickly becoming insurmountable. This shift marks a critical juncture in history, distinguishing between AI-capable nations and those left behind. Should Israel fail to position itself at the forefront of this revolution, it risks obsolescence. Conversely, by strategically embracing AI, Israel can secure not only economic prosperity but also enhanced defense capabilities and elevated global prominence, potentially joining the ranks of the world's most influential nations in the 21st century.
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Today, even as Israel confronts ongoing conflicts on multiple fronts, such as the war in Gaza and the threats from Lebanon, Israeli authorities recognize the critical importance of AI and are allocating millions to fund the import of AI experts from abroad. Since the launch of ChatGPT in November 2022, the world has been changing at a dizzying pace. Countries like Japan and China are investing vast resources in developing advanced AI systems, and Israel has an opportunity to lead this field in the Middle East. Strategic investment in AI is crucial for national security and will also enhance Israel's international standing and strengthen its economy. Expertise in Semitic languages like Hebrew and Arabic, combined with Israel's renowned cybersecurity capabilities, could propel Israel to become a regional superpower in the field of AI.
The time to act is now. In 2019, a committee led by Prof. Isaac Ben-Israel and Prof. Eviatar Matania published a plan to make Israel an AI powerhouse, but unfortunately, the plan was not implemented, and Israel is now lagging in the race. Establishing Israeli AI companies like Sakana AI, or even more audaciously, a local version of OpenAI, is critical to ensuring the country's economic, strategic, and security future. Companies like AI21, founded by Amnon Shashua, Ori Goshen, and Yoav Shoham, are a good start, but not enough. A national, fully integrated effort supported by venture capital funds is required to provide Israel with a competitive edge in the field, enhance national security, and stabilize the region.
By leveraging robust private and national investments, Israel can close the gap and become a global leader in AI, mirroring its success in cybersecurity technologies, thereby securing its position as a key player on the global stage. This endeavor demands a concerted effort, bringing together venture capital funds, industry leaders, security experts, and academic institutions to harness Israel's unique capabilities and shape the future of AI.
Dr. Micha Breakstone is a serial entrepreneur and pioneer in artificial intelligence. He was a co-founder of Chorus.ai, acquired by ZoomInfo for $575 million. He is currently the CEO and co-founder of TechBio company Somite.ai, which develops foundational AI models for stem cell biology, in partnership with leading researchers from MIT and Harvard Medical School.
