Israel is moving into one of the world’s most competitive technology races, launching a national effort to develop quantum computing infrastructure, advanced artificial intelligence systems and the next generation of AI-powered machines. The National Artificial Intelligence Directorate at the Prime Minister’s Office, together with the Accountant General’s Division at the Finance Ministry, announced a series of initiatives designed to advance Israel’s capabilities in quantum technology and artificial intelligence. The first major projects include “Project Nexus,” a tender to establish an Israeli-built national quantum computing platform, as well as programs to develop infrastructure for “Physical AI” and advance domestic AI models. Officials said the goal is to strengthen Israel’s technological independence and maintain its position as a global innovation leader. Building an Israeli quantum computer Quantum computing represents a major shift from traditional computing. While conventional computers process information using bits that represent either 0 or 1, quantum computers use quantum bits, or qubits, which can exist in multiple states simultaneously. This allows quantum systems to analyze certain complex problems in ways that traditional computers cannot, potentially transforming fields such as cybersecurity, medicine, materials science and advanced simulations. The global race to develop powerful quantum computers has become a strategic competition among major powers because of their potential impact on encryption, national security and communications. A sufficiently advanced quantum computer could eventually threaten current encryption systems protecting financial networks, critical infrastructure and military communications. Preparing for the era of Physical AI Alongside quantum computing, Israel is also investing in what is known as Physical AI, a field focused on systems that can understand and interact with the physical world. Unlike traditional AI systems that operate mainly through software, chatbots or screens, Physical AI combines artificial intelligence models with sensors, machines and robotics. Applications could include humanoid robots, autonomous vehicles, smart medical