ISRAEL365NEWS
NVIDIA, the US-based technology giant, has witnessed a remarkable surge in its market value, overtaking Apple as the world’s second most valuable company. This extraordinary rise is largely fueled materially, by strategic investments in artificial intelligence (AI), and spiritually, by their deep-rooted connections with Israel.
Israeli tech influencer Hillel Fuld posted on X, “NVIDIA has been incredibly vocal about its support for Israel and has also put its money where its mouth is. If you think those two things are not connected, you’re not paying attention. Those who bless the Jewish people will be blessed!”
NVIDIA’s relationship with Israel has been a cornerstone of its success. The company has significantly expanded its research and development (R&D) operations in Israel, which now hosts its second-largest development center outside the United States. Since its establishment in Israel in 2016, NVIDIA’s workforce in the country has grown to 3,300 employees, representing 13% of its global workforce. This substantial growth underscores NVIDIA’s commitment to leveraging Israel’s rich talent pool in AI and technology.
One of the most notable projects highlighting NVIDIA’s confidence in Israeli innovation is the Israel-1 supercomputer. Announced in May 2023, Israel-1 is the world’s most powerful AI supercomputer, and it is expected to drive significant advancements in AI research and development. NVIDIA CEO Jensen Huang emphasized that this supercomputer would enable Israeli companies to develop AI applications that could revolutionize global enterprise productivity and business models.
NVIDIA’s acquisition of Mellanox Technologies in 2019 for $6.9 billion was a pivotal move that bolstered its presence in Israel. Mellanox, an Israeli company specializing in advanced networking solutions, provided NVIDIA with critical technologies that have fueled its growth in the AI sector. Products based on Mellanox technology now generate annual sales of $13 billion, highlighting the success of this acquisition.
NVIDIA’s expansion in Israel is part of a broader trend among tech giants seeking to tap into the country’s innovative ecosystem. The company plans to hire 1,000 new employees for its Israeli R&D center by 2023, focusing on roles ranging from software and hardware engineering to chip design and AI research. This recruitment drive is indicative of NVIDIA’s strategy to harness Israel’s technological expertise to stay ahead in the competitive AI market.
Despite its successes, NVIDIA faces challenges in Israel, particularly in securing top talent amidst intense competition from other tech giants like Apple. The battle for human capital is fierce, and the demand for skilled engineers and researchers continues to outpace supply. However, this competition also spurs innovation and growth within Israel’s tech sector.
NVIDIA’s presence in Israel has a ripple effect on the broader tech ecosystem. Over 1,000 Israeli companies developing AI technologies are participating in NVIDIA’s startup program, fostering a collaborative environment that benefits both the company and the local tech industry. However, analysts like Nir Orgad from Bank Leumi suggest that NVIDIA could further enhance its impact by establishing chip manufacturing facilities in Israel, similar to Intel’s operations, thereby providing more substantial contributions to the local economy.
NVIDIA’s explosive growth can be significantly attributed to its strategic investments and robust partnerships in Israel. By leveraging the country’s rich talent pool and innovative spirit, NVIDIA has positioned itself as a leader in the AI revolution, paving the way for continued success and transformative advancements in technology.
