The third week of May 2026 is shaping up to be one of the most eventful periods of the year for Israeli tech. Within days, two significant acquisitions closed — Check Point's purchase of Deepchecks and Cisco's finalization of the $400 million Astrix deal — alongside a wave of mega-funding rounds led by Decart ($300M), Unframe ($50M), Tomorrow.io ($35M extension), ZyG ($60M) and Kela ($200M).

Check Point Acquires Deepchecks

Check Point Software Technologies announced the acquisition of the team and technology of Deepchecks, an Israeli AI startup specializing in evaluation, observability, testing and monitoring of LLM and agentic AI systems. Industry estimates value the deal at $10–20 million. The team will join Check Point's new Agentic Network Security Orchestration platform, which aims to turn months of manual network security policy work into minutes of verified action.

This is Check Point's fourth Israeli startup acquisition in 2026, part of a broader push into AI-driven cybersecurity.

Cisco Closes $400M Acquisition of Astrix Security

Cisco completed its acquisition of Astrix Security, an Israeli cybersecurity startup that built a platform for securing non-human identities (NHI) — API keys, OAuth tokens, service accounts, and autonomous AI agents. The deal, valued at approximately $400 million, extends Cisco's Zero Trust capabilities to the emerging "agentic workforce," where AI agents operate alongside human employees.

Astrix was backed by Menlo Ventures and Anthropic, and its acquisition reflects surging demand for AI agent security across the enterprise.

Decart: $300M at $4B Valuation with Nvidia as Investor

Decart, an Israeli-American AI startup founded by Dr. Dean Leitersdorf in 2023, raised $300 million at a valuation of nearly $4 billion. The round was led by Radical Ventures, with Nvidia joining as a new investor alongside eBay Ventures, Adobe Ventures, Toyota Ventures, Atreides Management, and Valor Equity Partners. Returning investors include Sequoia Capital, Benchmark, and Zeev Ventures.

The company develops software that simplifies switching between AI chips from different providers and specializes in real-time inference infrastructure. Amazon joined as a strategic customer, with partnership plans via AWS. In total, Decart has raised over $450 million since its founding.

Tomorrow.io Expands Series F to $210M

Tomorrow.io, a weather intelligence platform founded by Israelis and now headquartered in Boston, announced a $35 million extension to its Series F round from Israeli investors Pitango and Harel Insurance. This brings the total round to $210 million, following $175 million led by Stonecourt Capital and HarbourVest in February.

The funds will accelerate Project DeepSky, described as the world's first AI-native weather satellite constellation. Tomorrow.io already operates 11 Gen 1 microwave sounder satellites providing a global 60-minute revisit rate.

ZyG: $60M Series A at $500M Valuation

ZyG, an Israeli AI startup building an "agentic operating system" for DTC e-commerce brands, raised a $60 million Series A led by Accel at a $500 million valuation. Founded by ironSource alumni alongside AI experts from a top Israeli cyber unit, the company automates marketing, advertising, and logistics for direct-to-consumer brands. This follows a $58 million seed round in March, bringing total funding to $118 million.

Kela: Defense-Tech Unicorn at $1B

Kela Technologies, which develops an open-architecture "operating system" for modern militaries, raised $200 million at a roughly $1 billion valuation. The round includes Bill Ackman and Eric Schmidt alongside lead investors Stripes and D1 Capital Partners, with continued backing from Sequoia and Lux Capital. Founded after October 7, 2023, Kela has now raised approximately $300 million total.

Fundamental AI Opens Tel Aviv Engineering Hub

Fundamental, a US-based big data AI startup co-founded by Israeli entrepreneur Gabriel Suissa, announced plans to open a Tel Aviv engineering hub with dozens of hires planned by end of 2026. The company, which raised $255 million and is valued at $1.2 billion, counts Wiz CEO Assaf Rappaport and Tel Aviv VC Hetz among its investors. Its platform, NEXUS, focuses on AI modeling of tabular data for enterprise risk prediction.

Government Boosts Deep-Tech Incubators

Israel published a tender for up to three new technology incubators focused on semiconductors, defense tech, robotics, and bioconvergence, offering up to $10.8 million per incubator. Separately, Israel Innovation Authority CEO Dror Bin announced he would step down after a five-year tenure that saw major expansion in AI, deep-tech, and national R&D funding programs.

The Bottom Line

The past week paints a picture of a dynamic and resilient Israeli tech ecosystem firing on all cylinders. Mega-exits to Cisco and Check Point sit alongside capital-intensive rounds in AI infrastructure, space tech, defense, and e-commerce. With Q1 2026 funding reaching $3.1–4.3 billion (depending on the tracker) and a steady stream of international acquirers, the ecosystem continues to produce world-class technology despite geopolitical headwinds.