Your customers don’t care which AI model you use

Choosing the right AI model matters. But when competitors can access the same technology, a repeatable way to reach customers and earn their trust can become the more durable advantage.
">

Choosing the right AI model matters. But when competitors can access the same technology, a repeatable way to reach customers and earn their trust can become the more durable advantage.

This week’s #FIRGUN celebrates Israeli tech funding, new venture and secondary funds, and a new route for private capital into defence technology, alongside a packed week of global AI releases.

The model providers powering AI startups are increasingly competing for their customers. From Claude for Financial Services to ChatGPT for small businesses, the move into applications is testing the defensibility of vertical and agentic AI. For founders, the question is what customers will keep paying for when competitors, internal teams and infrastructure providers can deliver the same core capabilities.

Making AI more capable does not automatically make it more trustworthy. As investment and geopolitical competition accelerate development, can safety keep pace? From alignment challenges to proposals for a FINRA-style watchdog, this post explores who should hold AI accountable and how startups can help deliver its benefits while reducing the risks.

A Rosh Hashanah edition of #FIRGUN celebrating Israeli startup funding and exits, alongside new AI models, mega-rounds and major acquisitions around the world. We also mark 25 years since September 11, holding remembrance alongside hope for a sweeter, more peaceful year.

Israeli startups announced more than $1.4 billion in funding this week, led by Wonderful, Upwind, HiBob and Lyte. The latest #FIRGUN also covers major exits, a new $250 million Israeli fund and the biggest developments across global technology and AI.

Israel is exceptionally good at producing founders and technology, but America remains the dominant platform for turning startups into global companies. With 70% of Israeli-founded unicorns built in the US, the data points towards a dual-centre model: Israeli R&D combined with American headquarters, customers, capital and commercial leadership.

Alice raised $140 million as AI security emerged as this week’s central theme, while Israeli companies pursued acquisitions across payments, agritech and cybersecurity. Globally, Nvidia’s reported $12.9 billion Hugging Face deal highlighted the accelerating consolidation of the AI stack.

For Israeli startups, entering the US is not simply about opening an office. It requires a focused commercial beachhead, sustained founder involvement, the right first US hire and a repeatable land-and-expand motion. This practical playbook covers the decisions that matter most, from New York versus Silicon Valley to hiring, culture, customer acquisition and investor expectations.

After years of limited venture activity, Israeli EdTech may be entering a new chapter. The founders of Moovit and Outbrain are joining a growing group of entrepreneurs using AI to reimagine tutoring, personalised learning, reading and what students can create.
Weekly Firgun Newsletter
Join founders and investors reading the weekly Firgun newsletter by Eze Vidra.