Podcast Summary: What's Your Number? — "Who's In (and Who's Out) of the U.S.-Saudi Deal"

Release Date: May 21, 2025
Hosts: Yonatan Adiri and Michal Lev-Ram
Description: Hosted by Yonatan Adiri and Michal Lev-Ram, What's Your Number? is a weekly podcast from Ark Media, examining the Israeli economy through a global perspective.

1. Numbers of the Week: Inflation vs. AI Talent

Inflation in Israel
Yonatan opens the episode by highlighting a concerning economic indicator:

Yonatan Adiri [00:12]: "1.1% inflation for the month of April. That is way outside the government's target and on an annualized basis puts us at 3.6%, which is even further out the Bank of Israel target."

He emphasizes the pressure rising from Israel's cost of living and its potential impact on the nation's economy.

AI Talent in Israel
Michal counters with a positive note on Israel's technological prowess:

Michal Avram [00:29]: "This is the percentage of Israeli workers with AI related skills, according to a recent report from LinkedIn which analyzed global data... this puts Israel in the top position, ahead of Singapore, Luxembourg, Estonia and of course the US when it comes to concentration of AI talent."

She humorously declares herself a weekly "winner" due to Israel's leading position in AI skills.

A Tied Contest
Despite the contrasting numbers, the hosts agree to consider this week's numbers a tie:

Michal Avram [01:19]: "But you know what? I just, I feel kind of funny winning with inflation, you know, so I'm going with mine. But whatever, we'll call it a tie this week."

2. Windex Performance: Israeli Equities on the Rise

Introduction to Windex
Michal introduces the Windex, an index tracking the stock performance of 50 publicly traded Israeli companies on U.S. exchanges:

Michal Avram [02:39]: "So our episode, another thing that's a little bit different is going to be part one of a two-part long play. That's what we call our deep dive into one critical issue."

Recent Developments
Yonatan provides updates on the Windex:

Yonatan Adiri [03:35]: "The Windex has another additional company as of last week... Etoro, an Israeli company that opened frankly the IPO window for digital financing and crypto last week... the equity shot up well beyond the top expectation."

He notes the Windex's performance relative to major U.S. indices:

Yonatan Adiri [03:35]: "Windex is up 1.29% but still below S&P and Nasdaq."

Key Performers
Specific companies are highlighted for their impressive growth:

• Fiverr.com surged by 9.1%, sparking discussions on the future of the gig economy in the age of AI.
• SolarEdge continued its robust performance with a 20% increase, following a previous 50% spike.

3. U.S. Triple A Credit Rating Downgrade

Moody's Downgrade
The hosts address a significant financial news item: Moody's downgrade of the U.S. Triple A credit rating, the first in over a century:

Michal Avram [08:26]: "On Friday, Moody's downgraded the US's Triple A credit rating. This is the first downgrade in more than 100 years."

Implications and Reactions
Yonatan analyzes the reasons behind the downgrade and its broader implications:

Yonatan Adiri [08:26]: "Moody's argues this is not going to get America to where it needs to get in terms of deficit target. That combined with tax cuts and others simply won't do. That's the math."

Michal adds the administration's perspective:

Michal Avram [09:43]: "The administration's response to this has largely been that this is politicized, that there's a political agenda here on the part of Moody's."

4. AI Advancements and Meta's Strategic Delay

Meta's AI Model Delay
Michal brings attention to Meta's decision to delay the rollout of its flagship AI model, Behemoth:

Michal Avram [10:30]: "Google IO is taking place over the course of the next few days. ... We'll get additional signs of how things are going in this space."

Interpreting the Delay
Yonatan offers insights into what this delay might signify for the AI industry:

Yonatan Adiri [11:14]: "If I read into that, and I read also into some other news around, we're getting to a bit of an edge of an S curve here... we'll have to wait and that it's more difficult than we think."

Michal draws a parallel with the autonomous vehicle industry's challenges:

Michal Avram [13:32]: "Here we are 10 years later... It's not mainstream, it's far from mainstream."

5. Deep Dive: The U.S.-Saudi Deal

Overview of the Deal
Michal introduces the main topic, the U.S.-Saudi deal, emphasizing its magnitude and focus areas:

Michal Avram [02:33]: "We're doing things a little bit differently today because later this afternoon I'm going to be boarding a flight... focusing on the recent U.S. Saudi deal."

What's in the Deal
Yonatan outlines the key components and financial commitments:

Yonatan Adiri [17:23]: "So, $600 billion... 20 billion to establish AI data centers and energy infrastructure. Partnerships between Saudi and US companies including Google, Uber, Boeing."

Additional partnerships and investments are mentioned:

Nvidia providing 18,000 advanced chips to Humane, an AI startup in Saudi Arabia, and collaborations with AWS and AMD.

What's Not in the Deal
The hosts discuss notable exclusions, particularly Israel's absence from the negotiations:

Yonatan Adiri [17:23]: "Israel's also not at least directly involved with any of these AI deals."

Implications for Israel
Michal probes into the repercussions for Israel amidst these developments:

Michal Avram [21:35]: "Nvidia's got huge presence in Israel and it's investing in Israel... what happens next?"

Yonatan presents a contrarian view, asserting Israel's continued strong position despite being left out of the summit:

Yonatan Adiri [21:35]: "I will say one thing that sort of I learned... the ability to then make things infinitely smoother and easier."

6. Speculative Analysis: Israel's Potential Role

Hypothetical Scenario: Israel in the Abraham Accords
Michal invites Yonatan to speculate on how Israel's involvement could have altered the dynamics of the U.S.-Saudi deal:

Michal Avram [23:53]: "Let's just dream here with me that Saudi Arabia was already in the Abraham Accords... What could things have looked like if Israel had been a part of the picture?"

Yonatan responds by highlighting the missed opportunities for collaboration and capital access:

Yonatan Adiri [23:53]: "If the summit happened after Saudi Arabia had normalized relationships... business becomes infinitely easier. There's a lot less friction."

He underscores the importance of building trust and partnerships to capitalize on the $600 billion investment:

Yonatan Adiri [25:09]: "We can talk money and architecture and this and that, the friendships that are created, the trust that is created."

7. Conclusion and Reflections

Words of the Week: President Trump's Address
The episode concludes with a reflective quote from President Trump's speech in Riyadh:

Yonatan Adiri [26:55]: "A new generation of leaders is transcending the ancient conflicts... building cities together, not bombing each other out of existence."

Michal adds a touch of humor while acknowledging the optimism:

Michal Avram [27:22]: "So I have one thing to say about that. My reaction is, inshallah, that's about it."

Final Thoughts
Yonatan expresses cautious optimism about the renewed American commitment to the Middle East and its potential benefits for Israel, while also highlighting ongoing regional tensions:

Yonatan Adiri [27:39]: "Where I am concerned is where the Iran dynamic is going to go. ... that would be dramatic."

Michal wraps up the episode, reminding listeners to subscribe and share the podcast:

Michal Avram [28:07]: "We hope you found it interesting... reach us at whatsyournumber@arkmedia.org."

Notable Quotes

• Yonatan Adiri [00:12]: "1.1% inflation for the month of April... it's another ticking bomb for the government to defuse."

• Michal Avram [00:29]: "Israel is the top position... I feel like I'm the winner every week."

• Yonatan Adiri [11:14]: "We're getting to a bit of an edge of an S curve here... we might have to wait."

• Yonatan Adiri [17:23]: "This is in essence an AI preemptive strike on China."

• Yonatan Adiri [23:53]: "Business becomes infinitely easier. There's a lot less friction."

• Michal Avram [26:55]: "President Trump's address... building cities together, not bombing each other out of existence."

Listeners' Feedback and Future Episodes
Yonatan and Michal encourage listener interaction, hinting at continued discussions on the U.S.-Saudi deal in upcoming episodes and exploring its long-term effects on the Israeli economy.

Produced by Ilan Benatar and edited by Her Royal Highness Michal Lev-Ram. Sound and video editing by Martin Juergo. Theme music by Midnight Generation.