US-based startup Fundamental, led by Israeli entrepreneur Gabriel Suissa, is expanding its footprint in Israel with the opening of a new engineering hub in Tel Aviv.
For the Tel Aviv-based development center, which is expected to launch on June 2, Fundamental plans to hire dozens of employees for engineering and infrastructure roles by the end of 2026, the San Francisco-based startup said on Tuesday. With offices in San Francisco, Barcelona and a small presence in Tel Aviv, Fundamental currently employs 70 people.
Founded in October 2024 by Suissa and serial entrepreneur Jeremy Fraenkel, Fundamental is the developer of an AI foundational model designed to crunch large databases that underpin enterprise decision-making, to predict risks and trends such as financial fraud, pricing and customer churn.
“At Fundamental, we are building a new category of AI designed for the data that is the backbone of the business world, from financial systems to supply chains to hospitals,” said Suissa. “To solve a technology problem of this magnitude, we need to recruit the best talent in the world, which is why the decision to open an engineering hub in Israel felt natural and obvious to us.”
“This is a long-term strategic investment on our part,” said Suissa.
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Fundamental said its Nexus model — built by former DeepMind alumni, including Marta Granelo — is trained on billions of tabular datasets and is designed to analyze raw tables with almost no need for complex configuration, sometimes using just a “single line of code.” The startup says the model can process massive databases without the inaccuracies typically associated with traditional AI models.
AI startup Fundamental co-founder Gabriel Suissa. (Courtesy)
In February, Fundamental emerged from stealth with its AI model and secured $275 million in funding from investors at a $1.45 billion company valuation. The funding round was led by US fintech investor Oak HC/FT, with participation from Valor Equity Partners, Battery Ventures, Salesforce Ventures and Hetz Ventures.
Among the startup’s angel investors are Wiz CEO Assaf Rappaport, Perplexity CEO Aravind Srinivas, Brex co-founder Henrique Dubugras and Datadog CEO Olivier Pomel.
Fundamental said it recently entered into a partnership with SAP to integrate its Nexus model into the software provider’s business AI platform. The collaboration is designed to help organizations analyze large volumes of tabular data and generate more accurate business predictions across areas such as finance, supply chains, operations and risk management.
Earlier this year, Fundamental inked a partnership deal with Amazon Web Services to sell its Nexus AI model. Alongside the partnerships, the startup said it has signed “seven-figure contracts” with Fortune 100 enterprises in the fields of oil and gas, finance and healthcare sectors.
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