IBI Investment House Buys Stake in AI Firm Gene Technologies
IBI Investment House has become a significant shareholder in Gene Technologies, an Israeli artificial intelligence company, after purchasing approximately 3.29 million shares for 4.3 shekels per share last Thursday. The deal, valued at around 14.1 million shekels, gives IBI nearly a 7% stake in the company. This investment positions IBI as a major institutional investor in Gene Technologies, which is currently experiencing substantial business expansion.
Oded Tahori, CEO of Gene Technologies, stated that the acquisition reflects IBI's confidence in the company's potential and growth drivers. IBI is not the first institutional entity to recognize Gene Technologies' potential; in June, Menora Insurance also became a stakeholder with a 6.4% holding. However, IBI's investment of over 14 million shekels highlights growing interest from the Israeli capital market in generative AI companies.
The background for IBI's entry includes a significant improvement in Gene Technologies' business performance. In the first half of 2026, the company's revenues surged by 286% to approximately 14 million shekels. Projected revenues from signed work orders reached about 126.4 million shekels, a sharp increase from just 19.4 million shekels at the end of 2025.
A key driver of the company's activity is the defense sector. Its subsidiary, Gene Defense, received a third immediate order from the Ministry of Defense within five months, worth approximately 14.9 million shekels. Total orders from the Ministry of Defense have reached about 23.5 million shekels, part of a potential agreement up to 45 million shekels. Gene Technologies also expanded its work with another government defense body, renewing and extending its Jeen AI platform license for 24 months starting June 2026 for about 3.54 million shekels, with further extension options and service expansion potential.
Beyond defense, Gene Technologies is also growing its civilian sector operations. It has signed a three-year agreement with a healthcare entity potentially worth up to 9.1 million shekels, a deal with a financial entity exceeding 10 million shekels, and another with a banking corporation up to 12 million shekels. Gene Technologies develops and implements generative AI solutions, including enterprise chat, AI assistants, and conversation analysis tools, designed for large organizations with security requirements and deployable in the cloud or on-premises.
The company, which employs over 100 people, operates a development center in Tel Aviv, has international operations, and has been traded on the Tel Aviv Stock Exchange since May 2025. For IBI, this investment comes as the AI field continues to attract significant attention, with Gene Technologies demonstrating both revenue growth and a substantial business backlog. The entry of IBI, alongside Menora's investment, signals increasing interest from Israeli institutional bodies in publicly traded local AI companies.
