Don't Bet Against Israel. Or Shaun Maguire
Also: A Model Miracle as Hebrew AI Model Rescued From Iran Rocket Rubble
Welcome to the weekend edition of Israel Tech Insider. I’m Amir Mizroch, a journalist and communications advisor working in Israeli tech for the past 15 years. As a former EMEA Tech Editor at The Wall Street Journal, I connect the dots to give you a sharp, insider’s take on what’s really going on in Israel’s tech industry.
In this issue:
Don’t Bet Against Israel. Don’t Bet Against Shaun Maguire
From Foundry to Frontier: Intel, Nvidia, and Israel’s Chip Future
Israeli Tech Workers Eye Relocation at Five-Year Peak
A Model Miracle: Hebrew AI Model Rescued From Iran Rocket Rubble
As always, feedback to amir@israeltechinsider.com
Don’t Bet Against Israel
Israel's financial markets have delivered the world's strongest performance during its 12-day conflict with Iran starting June 13, with the shekel achieving its best two-week performance since 2003 and Israeli stocks leading global indices, according to Bloomberg data.
This signals investor confidence in the nation's military supremacy following the destruction of Iran's nuclear infrastructure and elimination of key scientists. The market surge reflects a fundamental shift in regional power dynamics, as Israel has systematically degraded the military capabilities of Hamas, Hezbollah, and Iran while establishing itself as the dominant force in the Middle East with no military peers.
The financial vindication comes alongside economic projections showing Israel will lead developed nations in GDP growth through 2027, demonstrating remarkable resilience despite facing existential threats over the past two years.
Don’t Bet Against Shaun Maguire
Shaun Maguire and the Real Cost of Picking a Side
Shaun Maguire, a partner at Sequoia Capital, is not being punished for misinformation, incitement, or hate speech. He is being punished for ideological clarity.
His post on X, calling NYC mayoral candidate Zohran Mamdani “an Islamist” from “a culture that lies about everything,” was incendiary—yes. But what followed was more revealing than the tweet itself: an organized campaign, spearheaded by hundreds of startup founders and investors, many with ties to the Middle East, demanding Sequoia reprimand or remove one of its most visible partners.
The offense, we are told, was Islamophobia. But look closely, and the charge doesn’t hold. Maguire followed up with clarifications distinguishing Islamism—a political ideology—from Islam, and issued direct apologies to those he may have inadvertently offended. His critique was political, not religious. But that hardly mattered. The campaign against him was not about bigotry. It was about boundary enforcement.
Maguire’s real sin was being openly, materially, and unapologetically pro-Israel—at a moment when polite society, particularly in Silicon Valley, demands silence, euphemism, or outright vilification. He doesn’t just support Israel rhetorically. He writes checks to Israeli defense startups. He bought a home in the country. His child attends a moshav school. He has made himself personally and professionally legible as someone who stands with Israel, not just in theory, but in practice.
This is what made him a target.
The backlash wasn’t spontaneous. It was coordinated. It also wasn’t just about identity—it was about capital. As Silicon Valley deepens its financial entanglements with Gulf states, the ambient pressure not to offend those sensibilities grows stronger. Public support for Israel remains politically radioactive in much of the Gulf (but you should hear how they praise Israel in private). And as firms raise ever-larger rounds from LPs in the region, they are increasingly expected to play by its rules—even if those rules are never written down. Maguire’s case reveals how those expectations are enforced: not through formal sanctions, but through reputational punishment, shareholder letters, and social coercion.
Let’s be clear-eyed: what’s happening to Shaun Maguire is not “cancel culture” in the juvenile, internet drama sense. It’s the professional application of political pressure to police the boundaries of acceptable allegiance. In this new order, being neutral is safe. Being vague is smart. Being visibly aligned with Israel is, increasingly, a liability.
What’s different in this case is that Maguire isn’t backing down. He issued clarifications, yes. But he’s also doubled down on the principle: you should be allowed to criticize political extremism—even when it intersects with protected identities—and you should be able to support Israel openly without fearing professional exile.
That stance has drawn its own response. A counter-letter in support of Maguire (which I have signed) is now gaining momentum. Hundreds of tech leaders, investors, and operators have signed on—not because they agree with every word Maguire wrote, but because they understand what’s at stake. This is about whether a high-profile investor can survive in today’s innovation economy while openly supporting a country that is increasingly cast as the villain in elite discourse.
I stand with Shaun because I see the pattern. If this effort to isolate and punish him succeeds, it won’t stop with him. It sends a message to every founder, investor, and technologist with ties to Israel: keep your head down. Keep your views to yourself. Support, if you must, but only in private—and never where someone might screenshot it.
That is the real chilling effect. And that’s why Shaun’s fight is my fight. Not because we agree on everything, but because if public, unflinching support for Israel becomes incompatible with leadership in global tech, then the industry isn’t neutral. It’s been captured. And it’s time more of us said so—clearly, publicly, and without apology.
Read and sign the open letter here
**Response from Nicolas Colin of Drift Signal: “Thanks for your post. I support Israel too, but have long been concerned about Shaun Maguire. His recent pro-Israel stance doesn’t erase his history as a Trump supporter and provocateur. His attack on a NY candidate based solely on Arab heritage was blatant bigotry, not legitimate advocacy. Unlike other right-leaning VCs, Maguire seems to thrive on provocation and controversy. Using support for Israel to excuse or shield bigotry ultimately harms the cause.
From Foundry to Frontier
What Intel’s Retreat, Nvidia’s Israel Expansion Signal About the Future of Chips
For decades, Intel was Israel’s semiconductor anchor. Its chip manufacturing fabs in Kiryat Gat were strategic assets, drawing billions in foreign direct investment, government subsidies, and skilled employment to the country’s south. But the future of that presence now looks uncertain. Intel has quietly halted part of its $25 billion expansion project, freezing the second phase of its Fab 38 site and laying off hundreds of contractors. The company, facing weak demand for its 18A chips and struggling to regain its technological edge, is rethinking its capital spending and product roadmap. Israel’s largest industrial investment is suddenly on ice.
This comes just as Nvidia—now the world’s most valuable tech firm—considers a major expansion of its own Israeli presence. Unlike Intel, Nvidia doesn’t fabricate its chips. Its model is fabless, relying on partners like TSMC, while concentrating on high-value domains: chip architecture, AI frameworks, and networking hardware. Its Israeli R&D operation—now its second-largest globally—is behind key innovations in cybersecurity, silicon photonics, and high-speed data center networking. Earlier this year, its team unveiled DOCA Argus, a real-time AI security platform developed entirely in Israel.
Nvidia plans an ambitious northern Israel expansion with a multibillion-dollar R&D and data center site for thousands of employees, while recently leasing 22,000 m² in Tel Aviv and hiring former Intel engineers at 33% higher salaries, signaling strong growth and confidence.
The Israeli government is hoping Nvidia will locate its next campus in the country’s north, near the now-de-escalated Lebanese border. Incentives include “anchor plant” status and billions in subsidies. But this is not just about job creation in peripheral regions. If Nvidia accepts, it will signal a shift in Israel’s semiconductor future—from a manufacturing hub for foreign firms to a strategic design and AI R&D powerhouse.
People on the Move From Israel
Israeli Workers Eye Relocation at Five-Year Peak—AllJobs Survey
This is not good. Seventy-three percent of Israeli workers are now considering relocating abroad, a new AllJobs survey finds—an 18-point jump over last year and the highest level seen in five years. The surge marks not just an economic warning, but a signal of shifting national mood, as employees cite personal security and political instability alongside perennial drivers like career ambition and living standards.
According to the annual poll from Israel’s largest online HR and recruitment platform, New York tops the list of desired destinations, while the United States remains the most attractive country for would-be emigrants. Europe’s appeal, meanwhile, is in retreat—respondents pointed to increasing antisemitism and local demographic changes as reasons for the shift. Some 11% now favor nearby options like Greece and Cyprus, reflecting a growing appetite for proximity and accessibility rather than globe-trotting adventure.
The methodology offers both insight and caveats. Run by AllJobs, the survey polled 611 employed Israelis aged 22 and older. As AllJobs sits at the heart of the national labor market—with unmatched reach among jobseekers—its findings carry significant weight for policymakers and business leaders watching for signs of critical brain drain.
Potential critique: Self-reported intentions, especially under the stress of current events, often overstate actual migration rates. Yet the overall trend is clear: post-October’s crisis, Israeli workers are making relocation a live option more than at any time in recent memory. The AllJobs survey sends a stark message—emotional, social, political, and security anxieties are reshaping Israel’s labor landscape in real time.
People on the Move to Israel
After twelve years at General Catalyst, Adam Valkin is joining Vine Ventures as a Partner. He will focus on early-stage investing in the US and Israel. Forbes has a great headline: Why A Top General Catalyst Partner Is Joining A Tiny Israel-Focused Fund
Ori Barzilay has been appointed as a partner at Team8, a leading venture capital firm specializing in cybersecurity, software infrastructure, and artificial intelligence.
Follow the $$
🍎 Apple has acquired Israeli startup TrueMeeting, a firm engaged in developing digital avatar technology for video calls and augmented reality. The acquisition, which occurred in January 2025, aims to advance the capabilities of Apple’s Vision Pro smart glasses. Read my recent report: Apple’s Israel CEO Opens Vision Pro Kimono to understand Apple’s, um, vision for its post-iPhone future. This acquisition aligns with Apple’s history of integrating Israeli innovations to enhance its product offerings.
🧑💻 Cyberstarts has raised $300 million to buy shares from employees of the firm's portfolio companies, according to co-founder Gili Raanan.
❤️ Restore Medical, an Israeli medtech startup, has raised $23 million in Series B funding to advance its minimally invasive device for heart failure, targeting a substantial global unmet need.
🤖 AI Reshapes Israel’s High-Tech Job Market: Fewer Entry Points, Skyrocketing Premiums for Top Talent. AI is slashing away Israel’s old tech career ladder—automating routine coding, QA, and support jobs, and making entry into the industry harder than ever for junior candidates. The era of easy, linear tech careers is over—survival depends on upskilling, specialization, and adapting to relentless automation. Here’s the Q4 2024 Bizportal analysis of market data and recruiter insights.
What I’m reading
The end of drone supremacy—Politico
Does working from home kill company culture?—The Economist
NEW PAPER: Democratic AI is Possible: The Democracy Levels Framework Shows How It Might Work—Aviv Ovadya
Quantum Computing Report July 2025—Earth & Beyond Ventures
Model Miracle: Hebrew AI Model Rescued From Iran Missile Rubble
Did Iran specifically target an Israeli AI researcher in a town south of Tel Aviv and who was working on a Hebrew-language AI model?
Yam Peleg, an Israeli AI researcher and podcast host, posted a photo on X showing the recovery of advanced AI models—likely the most powerful ever trained in Israel, including some unreleased to the public—along with a massive, comprehensive Hebrew-language dataset, stored on two hard drives, from the rubble of a Bat Yam high-rise damaged by an Iranian missile strike during the recent 12-day war.
The rugged black case also contained power supplies, cooling fans, and cables, all meticulously arranged, reflecting the critical nature of the equipment salvaged from an area deemed at immediate risk of collapse, where a coordinated effort involving drone footage, 3D mapping of the damaged floors, and special permissions allowed a team to extract the items after hours of navigating hazardous conditions. This operation, planned over three weeks by dozens of people and executed with 18 hours of travel and 10 hours of carrying hundreds of kilograms up stairs, underscores the data's unique value—partially backed up in the cloud but with the full Hebrew dataset preserved only locally—positioning it as a strategic asset.
Shaun is a mensch!
Just finished Nicolas Colin’s article and found this one. Can't believe people can't separate Islamism from Islam. He should definitely visit the UAE, where they can show him it looks in reality.