The Elephant in the Room: Israeli Intelligence
Whenever the idea of a US–Israel national security technology fund comes up, someone eventually lowers their voice and says it: “But what about Israeli intelligence?” The implication is that by working with Israeli companies, the United States is somehow inviting espionage or compromise. It’s the elephant in the room, and it’s time to talk about it directly.
Here’s the reality: this concern is largely misplaced. Not because intelligence threats between allies don’t exist, but because it misunderstands both how counterintelligence works and the nature of the US–Israel relationship.
Intelligence Agencies Operate Covertly: That’s the Point
Every serious country runs intelligence operations. The United States has the CIA, NSA, DIA, and others. Israel has the Mossad, Shin Bet, and Aman. The UK has MI5 and MI6. The list goes on. These agencies operate covertly by design; if they didn’t, they wouldn’t be doing their jobs.
In counterintelligence, you do not secure your systems by avoiding contact with countries that have intelligence services. If that were the rule, the US wouldn’t be able to work with any ally on earth including NATO members. The correct approach is to build layered security protocols, clearances, and vetting processes that protect sensitive information no matter the origin of the partner. That’s exactly what the US already does with foreign military sales, joint R&D, and defense industrial cooperation.
If America has counterintelligence concerns, it should look first at American companies. Counterintelligence threats almost always come from within the system. Nearly every major US counterintelligence breach in the last 50 years from Aldrich Ames to Robert Hanssen to Edward Snowden involved Americans with clearances betraying American secrets, not foreigners slipping in through overt partnerships.
The Geopolitical Reality: Israel Is Not a Rival
Espionage concerns usually make sense when the other party is a geopolitical competitor. The US worries about China’s technology investments because China is a strategic rival seeking to displace American power. The same applies to Russia and, increasingly, Iran.
Israel is in an entirely different category. The US is Israel’s largest military patron, strategic partner, and diplomatic backstop. American defense guarantees, joint exercises, and military aid are foundational to Israel’s security. Undermining American national security would be suicidal for Israel’s own strategic position. Israel’s security doctrine is built on being in lockstep with the US, not at odds with it.
Where the Concern Really Comes From
In my experience, most of the suspicion toward Israeli companies in this space doesn’t come from rigorous counterintelligence analysis. It comes from a vague blend of Cold War-era thinking, ignorance about Israel’s role in the US security ecosystem, and, frankly, a strain of antisemitism: the old stereotype of shadowy Jewish power repackaged for the tech age.
It’s the same line of thinking that assumes every Israeli founder is an “agent” or that every piece of dual-use tech from Tel Aviv must be a front for the Mossad. It’s lazy, it’s prejudicial, and it’s out of step with how modern alliances function.
A Better Way Forward
None of this means we skip due diligence. On the contrary: joint US–Israel technology efforts should be governed with clear security protocols, background checks, and compartmentalization. The difference is that these measures should be applied equally, to US and Israeli entities alike, because the real vector for compromise is insider access, not national origin.
In fact, working closely with vetted Israeli companies through a formal US–Israel tech fund would reduce risk compared to the status quo, where some of the same Israeli startups quietly take capital from China or other adversarial actors simply because the US isn’t present at the table.
If we want to keep sensitive, high-impact technology inside the trusted circle of democratic allies, the right move is more structured engagement with Israel, not shunning it.
The “Israeli intelligence” objection might sound sophisticated, but in reality it’s a symptom of a naive understanding of counterintelligence and, sometimes, a prejudiced view of America’s closest ally. The fact is, the US and Israel are already in the same fight. We can either win it together or let unfounded fears hand the advantage to those who are truly working against us.