60,000 GPUs and global talent: Israel’s AI report reads like a tech wish list
Critics point to lack of cost-benefit analysis in Nagel Committee’s ambitious proposal.
A high-level government committee appointed by Prime Minister Benjamin Netanyahu has published a far-reaching report on the future of artificial intelligence in Israel. The Nagel Committee, named after its chair, Yaakov Nagel, a close associate of Netanyahu, recommends investing NIS 25 billion over five years to build Israel’s AI infrastructure, creating a national language model, offering tax incentives to AI employees and investors, and establishing a new AI headquarters inside the Prime Minister's Office with 25 employees, each earning between NIS 75,000–90,000 per month.
The committee’s most urgent recommendation: Israel must accelerate its AI capabilities or risk falling behind. Among the proposals: purchase 60,000 GPUs, create a dedicated research institute, adapt energy policy to meet AI demands (including potentially building a civilian nuclear reactor), and amend privacy laws to enable broader data use.
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Nagel Committee submits AI report to Netanyahu
(Prime Minister's Spokesperson's Office)
Despite its ambitious proposals, the report lacks a clear blueprint for how the national AI headquarters should function. While its formal mandate was to propose the structure and responsibilities of this new body, the report vaguely states: "We proposed a structure for the national body, but we emphasize that the precise structure is not the main thing, but rather the rapid establishment of the body."
The report repeats dire warnings, using the word “serious” eight times, and claims that Israel is significantly behind global competitors in AI, citing massive public investments by countries like the UAE, Iran, and Russia. However, it offers little theoretical or economic justification for the extent of government intervention it proposes.
The committee was technically only asked to address how the Prime Minister’s Office should build a central AI body, its tasks, and an initial work plan. But the final report goes much further, proposing sweeping national reforms and a NIS 25 billion budget. The lack of footnotes, cost-benefit analysis, and detailed rationale for the spending plan weakens its credibility and invites resistance from the Ministry of Finance.
Still, the authors insist that the price tag represents just 0.25% of GDP, arguing the investment will pay for itself "many times over." For instance, NIS 400 million per year is earmarked just for recruiting overseas researchers.
The committee reiterates several long-known challenges:
1. Human Capital – Israel has only 120 researchers in core AI disciplines. The report recommends creating dedicated AI academic programs and offering incentives to attract Jewish or pro-Israeli Nobel laureates to teach in Israeli universities.
2. Computing Infrastructure – The country lacks adequate resources and must scale up dramatically.
3. Data Access – Outdated privacy laws hinder innovation.
4. Governance – The AI ecosystem in Israel has been poorly managed by the government for years.
