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Israeli drone startup XTEND has received a multi-million-dollar contract from the US Department of Defense to develop AI-enabled, modular attack drones. Israel's GDP is expected to grow by 4.3% by 2026, supported by a surge in tech investments, which reached $16 billion in 2025.

Non-Israeli companies plan to invest $60 billion in over 85 Israeli firms. The US-brokered ceasefire may lead to regional stability, enhancing Israel's tech ecosystem. Recent defense exports include a $4.6 billion deal for the Arrow 3 missile system to Germany and a $356 million acquisition of Orbit Technologies by Kratos.