In a span of just 29 days, five different technology companies were reportedly interested in acquiring Decart, an Israeli artificial intelligence startup. The companies, including NVIDIA, SpaceX, Amazon, Nebius, and Anthropic, valued Decart at $6-7 billion. Decart's capabilities in building real-time generative video models and training generative interactive models have attracted big tech giants.
The interest in Decart is not an isolated incident. Between 2017 and 2025, four Israeli technology companies were acquired by big multinationals. These include Mobileye, acquired by Intel for $15.3 billion in 2017, Habana Labs, acquired by Intel for $2 billion in 2019, Mellanox, acquired by NVIDIA for $7 billion in 2020, and Wiz, acquired by Google for $32 billion in 2025.
According to Rory Sutherland, evolutionary biology can be used to understand technological changes. He invokes the concept of "adjacent possible," which explains how technology moves from one point to another. This concept, inspired by science writer Olivia Judson, suggests that innovation is not magical, but rather built slowly and gradually.
The Israeli tech ecosystem has experienced a cumulative framework, where early players have created new possibilities and enlarged the boundaries of what existed before. Startups like Mobileye, Habana Labs, and Wiz have paved the way for emerging startups like Decart to build on. This cumulative advantage is an aggregation of knowledge, time, relationships, and problem-solving that makes the next innovation easier to achieve.
Unit 8200, a military unit, plays a significant role in the Israeli tech ecosystem. It absorbs young Israelis with exceptional mathematical and programming skills, exposing them to technically demanding work and real-life problems. Alumni of Unit 8200, including Decart's founders, Dean Leitersdorf and Moshe Shalev, have gone on to start successful startups.
Big tech giants rely on buying rather than building due to the fast-paced nature of the technology industry. They look for startups with innovative solutions that can enhance their existing products. The "MAYA" principle, or "Most Advanced Yet Acceptable," guides their decisions, seeking innovations that are both new and familiar.
The trend of big tech giants acquiring Israeli startups is expected to continue, driven by the country's thriving tech ecosystem and the desire for innovation. As possibilities emerge and are met with innovation, more nodes and openings are created, attracting further investment and interest from big tech companies.
Key points
- Big tech giants are attracted to Israeli startups due to their advanced capabilities in areas like AI, computer vision, and semiconductors.
- The Israeli tech ecosystem has experienced a cumulative framework, where early players have created new possibilities and enlarged the boundaries of what existed before.
- Unit 8200 plays a significant role in the Israeli tech ecosystem, providing a platform for young talent to develop their skills and start successful startups.
