Report: Israeli Military Technology Companies Rake in Billions after Gaza

SadaNews - Israeli companies specializing in military technology are making enormous profits from the weapons they developed over two years of war in Gaza, according to the American newspaper "Washington Post".

Many startup officials mentioned that foreign requests to purchase their weapons and systems have significantly increased after two years of war, with external demand rising following Israel's successful execution of dawn attacks against Hezbollah in Lebanon in 2024, as well as after Israeli intelligence operations inside Iran during the 12-day war last June.

Israeli startups recorded a record investment figure of $15.6 billion in 2025 compared to $12 billion in 2024.

Hagai Balshi, the CEO and founder of "Robotican," stated that the October 7 attack was a shock to the Israeli army and prompted it to invest in the private sector to help digitize battlefields in a short time, bringing systems like drones, robots, and sensors into service.

The Israeli technology sector has long relied on the expertise of engineers and programmers graduating from elite intelligence units, adopting a Silicon Valley culture. Most of them hail from communities near the Gaza border, alternating between civilian and military attire.

Eran Tuach, a professor of engineering at Tel Aviv University, indicated that the development of military systems based on artificial intelligence allowed Israel to produce target lists at unprecedented speed and scale, granting the army unprecedented capability to strike Hamas fighters in Gaza.

However, he added that these systems also revealed the limitations of warfare dependent on artificial intelligence, as they failed to assess the risks of civilian casualties or account for the broader impact of the military campaign.

Michal Mor, an executive at one of the Israeli companies, stated that her company developed an AI-powered rifle accessory that helps soldiers detect and shoot at targets, emphasizing that this technology has helped save the lives of soldiers and uninvolved civilians.

However, allegations of "genocide" and famine directed at Israel in its war on Gaza, as well as the issuance of an arrest warrant against Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant, have led many European countries to ban the export and import of Israeli weapons.

Despite the withdrawal of many foreign investments in Israel over the past years, several companies have found ways to circumvent restrictions, such as registering in the United States or sending delegations from their American and European offices to arms exhibitions to negotiate deals.