What's Your Number? Israel's Exposure to the AI Bubble
Nov 12, 2025
The discussion kicks off with a notable defense deal between India and Israel worth $3.75 billion, highlighting strategic partnerships. As market jitters surface, hosts delve into the AI bubble's vulnerabilities, exploring its potential wobble. They review Goldman Sachs' optimistic outlook on Israel's labor recovery amid the current AI landscape and discuss the tech sector's resilience. Energy constraints emerge as a key issue for AI scalability, fueling local backlash and concerns about community impacts. They assess Israel's strengths as an agile player in the AI ecosystem.
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Israeli Tech Shows Market Resilience
- The WYNDEX lost less than NASDAQ and S&P, showing Israeli tech's relative resilience during the AI wobble.
- Yonatan argues this suggests Israel is more insulated from an AI-driven market correction than US peers.
Deploy AI To Improve Government Efficiency
- Use AI inside government services to boost revenue and productivity.
- Yonatan cites tax-fraud AI that helped Israel collect over 14 billion shekels in two years.
Sentiment, Not Earnings, Sparked The Wobble
- The AI pullback was driven more by jitters and high-profile comments than by weak earnings.
- Michal and Yonatan trace the wobble to remarks from industry figures and bank warnings, not fundamental revenue misses.
