Israeli Gaming Company Buff Technologies Shares Surge 40% on AI Data Deal
Buff Technologies, an Israeli gaming company, saw its stock jump about 40% on the Tel Aviv Stock Exchange on Monday. Buff operates a platform for gamers with a membership club of around 20 million users, rewarding them with points redeemable for products in its online store. Until now, its revenue model relied primarily on advertising targeted at gamers.
The significant stock surge followed Buff's announcement of a new partnership with one of the world's top five artificial intelligence companies. This unnamed AI giant will purchase data on gamer behavior from Buff's club members. The initial pilot deal is valued at $300,000, with potential for much larger data sales if successful. Buff declined to disclose the AI company's identity.
CEO Eyal De Bar explained that AI companies require vast amounts of human behavior data to train their models, presenting a new revenue opportunity for companies like Buff that have accumulated extensive user data. Buff has developed advanced infrastructure for collecting and processing large-scale user information, positioning it to integrate into the AI industry's value chain.
Noted tech investor Noam Lanir, who holds a 7% stake in Buff, highlighted the growing demand among AI firms for "clean, unbiased crowd wisdom" to train models effectively. He compared the race for quality data to the ongoing races for advanced chips and data centers.
Founded six years ago, Buff remains unprofitable despite its recent stock gains. In 2025, it reported $8.5 million in revenue but a net loss of $2 million. The company was initially valued at 90 million shekels, dropped to a low of 20 million, and currently trades at about 33 million shekels.
De Bar emphasized the potential of selling targeted data to AI firms, noting that Buff can incentivize gamers to perform specific actions within games to generate relevant data. For example, racing game data could serve automotive AI models, while war game data might assist defense-related AI development.
