Analysis

Financing “The New Oil”

Assessing AI Investment in Israel and the Broader Middle East

Anthony Ferrara

Sara Abdulla

May 2023

Israel has by far the largest AI ecosystem in the Middle East as measured in AI companies and financial investments, and foreign investors play a critical role in Israel’s AI market growth. This issue brief finds that AI investments in Israel have mostly originated from the United States. To date, Chinese investors have played a limited role in funding Israel’s dynamic AI companies. But understanding the risk of Chinese investments into the Israeli AI ecosystem will be important for the national security of both the United States and Israel.

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Quad AI

May 2022

Through the Quad forum, the United States, Australia, Japan and India have committed to pursuing an open, accessible and secure technology ecosystem and offering a democratic alternative to China’s techno-authoritarian model. This report assesses artificial intelligence collaboration across the Quad and finds that while Australia, Japan and India each have close AI-related research and investment ties to both the United States and China, they collaborate far less with one another.

Tracking AI Investment

September 2020

The global AI industry is booming, with privately held firms pulling in nearly $40 billion in disclosed investment in 2019 alone. U.S. companies continue to attract the majority of that funding—64 percent of it in 2019—but that lead is not guaranteed. This report analyzes AI investment data from 2015 to 2019 to help better understand trends in the global AI landscape.

U.S. policymakers are increasingly concerned about the national security implications of U.S. investments in China, and some are considering a new regime for reviewing outbound investment security. The authors identify the main U.S. investors active in the Chinese artificial intelligence market and the set of AI companies in China that have benefitted from U.S. capital. They also recommend next steps for U.S. policymakers to better address the concerns over capital flowing into the Chinese AI ecosystem.