Israeli military start-ups cash in on two years of war – WaPo

The companies have claimed that foreigners are eager to buy systems developed and tested in Gaza despite an EU arms sale ban

Israeli start-up executives claim that foreign requests to purchase their weapons and related systems are up sharply, the Washington Post wrote on Tuesday. Israel’s strikes on Gaza and Lebanon, as well as attacks on the Hezbollah militant group, have reportedly stoked foreign demand for the weapons and other technology used by Israeli troops.

According to Startup Nation Central, Israeli start-ups brought in a record $15.6 billion in investments in 2025, up from $12 billion in 2024, and industry experts predict that the trend will continue, WaPo said.

The surge in demand for Israeli military technology stands in contrast to the position of many European governments, which have condemned Israel’s conduct in Gaza and in some cases moved to suspend or limit arms exports to Israel over fears they could be used to violate international humanitarian law. Among the nations that have banned or restricted arms sales are Britain, Italy, Spain, Canada, Belgium, and the Netherlands.

Read more

“There are governments that are publicly virtue-signaling about Gaza, to placate the street while also sending their defense leaderships to talk with Israeli companies to protect that same street,” Aaron Kaplowitz, founder of 1948 Ventures, a Miami-based venture capital firm that invests in Israeli military tech, told WaPo.

Just a few days earlier, the newspaper wrote that Google had breached its own policies that barred use of artificial intelligence for weapons or surveillance in 2024 by helping an Israeli military contractor analyze drone footage. According to a former Google employee, Google’s Gemini AI technology was being used by Israel’s defense apparatus at the same time the company was publicly distancing itself from the country’s military after employees protested a contract with West Jerusalem.

READ MORE: Google sold AI tools to IDF after Hamas attack – WaPo

Google employees became directly involved in providing the Israel Defense Forces with access to AI tools soon after the October 2023 Hamas attack on Israel, which led to Israel’s bombing and ground invasion of Gaza, according to the media.

More than 71,000 Palestinians have been killed in the Israel Defense Forces’ invasion of Gaza, according to local health officials, and much of the enclave’s population has been displaced from their homes.