Nvidia's Israel expansion plan draws multiple site offers

Nvidia is planning an expansion in Israel to address the growing demand for AI data centers.

The company recently issued a request for information (RFI) for land to build a new campus near its existing facility in Yokne’am, northern Israel.

The site could span 180,000 square meters and cost billions of dollars, creating thousands of jobs.

Nvidia entered the Israeli market in 2020 through its US$7 billion acquisition of Mellanox Technologies.

Since then, it has nearly tripled its workforce in the country and now employs about 5,000 people.

The company has also built Israel’s most powerful AI supercomputer, which served as a model for Elon Musk’s Colossus supercomputer.

The move contrasts with Intel’s local layoffs and reflects Nvidia’s AI dominance.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Israel’s strategic position in Nvidia’s AI ecosystem extends beyond geographical diversification

Nvidia’s major expansion in Israel is driven by the strategic value of its existing acquisitions in the country, rather than just talent or cost benefits.

The company’s Israeli operations already contribute approximately $13 billion in revenue annually following its nearly $7 billion acquisition of Mellanox Technologies in 2020 1.

Nvidia has nearly tripled its size in Israel since that acquisition, growing to 5,000 employees across multiple facilities in Yokne’am, Tel Aviv, Beersheva, and Tel Hai 1, 2.

This latest expansion, requiring 80,000 to 180,000 square meters of space, represents one of the largest real estate investments by a foreign tech company in Israel, with up to NIS 2 billion ($540 million) allocated for construction and NIS 500 million ($135 million) for land acquisition 2.

The investment follows Nvidia’s pattern of building deep technical capabilities in Israel, including the development of Israel’s most powerful AI supercomputer.