Israeli companies double down on AI infrastructure, setting the stage for 2025

The first phase of Israel-1, the domestically produced quantum 20-qubit supercomputer, was completed two months ahead of schedule. Since then, the project has gained global recognition for its advanced superconducting technology, which offers eight exaflops of peak AI performance and 130 petaflops of high-performance computing (HPC). 

To illustrate, it recently ranked 34th in the TOP500 list of the world’s fastest supercomputers, marking a rapid rise since its initial launch. 

The supercomputer serves as both a blueprint and test bed for future large-scale AI clusters, and comes at a pivotal moment for global AI development. As interest in AI adoption takes off, the need for supporting technologies that accelerate progress and save resources is needed more than ever. 

Still, Israel-1 is far from the only example of how enterprises are helping to build the components of AI infrastructure that will boost innovation both domestically and internationally. 

Nvidia is also constructing a 30-megawatt research-and-development supercomputer stuffed with its latest-generation GPUs in northern Israel at an estimated cost of half a billion dollars.

The cluster’s home is a 10,000 square meter facility located in the Mevo Carmel Science and Industry Park near the city of Yokne’am Illit.

Meanwhile, tech giant ARM is estimated to be employing about 100 chip and software development engineers in its global graphics processing group at its development center in Ra’anana.

Access to AI will be a key differentiating factor for the next chapter of innovation. On this front, companies are increasing taking ambitious approaches to advancing AI ecosystems. One company, SQream, this week announced the appointment of a new CEO, Liam Galin, who aims to spearhead plans to create an AI Factory enabler and usher in a new era of widespread AI adoption. 

We had the chance to speak with Galin to learn more about the next phase of growth for the data acceleration company, the importance of mass enablers in 2025, and what we can expect for the global AI sector on the road ahead. 

The era of AI factories 

Last month Nvidia held its annual developer conference – NVIDIA GTC – which often gives us a window into the future. During the 2025 proceeding, executives and Nvidia CEO Jensen Huang himself spoke frequently about the AI Factory.

In a nutshell, an AI Factory is computing infrastructure designed to create value from data, via managing the AI life cycle from data and training all the way to analytics. 

While a traditional data center typically handles diverse workloads and is built for general-purpose computing, AI factories are optimized to create value from data. According to Nvidia, they orchestrate the entire AI lifecycle — from data ingestion to training, fine-tuning and, most critically, high-volume inference.

SQream has been a partner with Nvidia for more than a decade, using GPU technology to help organizations tackle data processing challenges more quickly and resource efficiently. “As an AI Factory enabler, we are uniquely positioned to meet the surging demand for AI-ready infrastructure by empowering enterprises to extract meaningful foresight from their massive data,” Galin explained. 

Under Galin, the Tel Aviv and New York-based company is planning its next era to further establish itself as the AI Factory enabler for mass-scale AI. 

As both Nvidia and the company place attention on the concept of the AI Factory that focuses on manufacturing intelligence at scale, could we expect to see a new phase of rapid adoption? 

High-performance and scalable centers designed for AI 

It’d be difficult to find a better executive to help accelerate Nvidia CEO Jensen Huang’s vision for creating AI systems at scale.

Galin has spent more than two decades at the helm of both startups and publicly-traded powerhouses. An alumnus of Tel Aviv University, he served as CEO of BriefCam (acquired by Milestone), Chairman and CEO of Flash Networks (acquired by Volaris Group), and Co-Founder and CEO of Whatify.ai.

To top it all off, he was also CEO of RiT Technologies, which was publicly traded on NASDAQ.

Now, he’s looking to advance the frontier of AI factories. “This is a pivotal point in time defined by three tectonic market shifts: GPUs taking center stage, AI booming, and big data reaching unprecedented scale, creating an unprecedented opportunity for SQream to lead the charge.” 

Mass adoption of AI across industries 

What is certain in the months ahead is the industry’s focus on AI factories to help companies transform data, with the big data market expected to reach $638 billion by 2028.

“We have a real opportunity to help enterprises reach their goals with our innovative solutions for mass-scale AI. I look forward to building upon the impressive work of the company and its unique, ground-breaking technology, addressing the demand for data-driven insights and foresights that has never been higher,” Galin continued. 

According to McKinsey, demand for data center capacity across the globe could rise at an annual rate of 19% and 22% until 2030, with the market for GPUs expected to increase by 30% by 2026. 

The technology at SQream looks to address this by delivering hyper-efficient data processing, enabling businesses to run AI-driven queries more cost-effectively.

This strategy builds on the work of Co-Founder Ami Gal, who served as the company’s CEO for 14 years. Gal remains at the company where he will serve as Chairman of the Board of Directors. Ittai Bareket, who was earlier Chief Alliance Officer, is also being promoted to Chief Business Officer.

Israel’s leading role with AI 

As tech enterprises outline plans to leverage GPUs and high powered computing to lead the charge with AI factories, it marks the next chapter of growth for the country’s AI sector and builds on the other infrastructure components including the quantum supercomputer and rising number of powerful data centers. 

This advancement in AI factories will mean Israel continues to act as an important player in the global AI sector.