Investors are continuing to invest heavily in AI, demonstrating their confidence in the long-term potential of the technology. Despite concerns about the slow returns on investment from AI projects and other challenges in the industry, funding for AI startups remains robust. In the first half of 2025, global startup funding reached $162.8 billion, with a significant portion driven by AI deals. Investors in major tech hubs like Silicon Valley and Tel Aviv are increasing their investments, not with the expectation of immediate gains but with a focus on long-term growth.

Glilot Capital Partners, a well-regarded Israeli venture firm in the industry, recently raised $500 million across its funds. This move reflects their belief that the stories of AI and cybersecurity are far from over. The firm’s co-founders emphasized their strategic approach to investing, particularly in cybersecurity, which they view as a stable and high-return sector.

In a funding environment where capital is concentrated and competitive, AI investments continue to dominate deal values. Glilot’s investment strategy aligns with this trend, aiming for sustained value creation at the intersection of AI and cybersecurity. They are committed to supporting promising founders over the long term and leveraging Israel’s strong ecosystem for global success.

The firm’s confidence in Israel’s position as a hub for AI and cybersecurity innovation is supported by data showing the country’s significant presence in global cybersecurity unicorns. Glilot’s focus on cybersecurity and infrastructure aligns with their vision of identifying future industry leaders in these areas.

Overall, investors are recognizing that the true value of AI lies not just in immediate returns but in building resilient infrastructure and defense mechanisms to sustain the growth of the AI economy over time. By focusing on sectors like cybersecurity, firms like Glilot Capital are positioning themselves for enduring success in the evolving landscape of AI investments.