Not yet reviewed by Pith; the record is open.

Quantum simulation and sensing hold great promise for providing new insights into nature, from understanding complex interacting systems to searching for undiscovered physics. Large ensembles of laser-cooled atoms interacting via infinite-range photon mediated interactions are a powerful platform for both endeavours. Here, we realize for the first time momentum-exchange interactions in which atoms exchange their momentum states via collective emission and absorption of photons from a common cavity mode. The momentum-exchange interaction leads to an observed all-to-all Ising-like interaction in a matter-wave interferometer, which is useful for entanglement generation. A many-body energy gap also emerges, effectively binding interferometer matter-wave packets together to suppress Doppler dephasing, akin to M\"ossbauer spectroscopy. The tunable momentum-exchange interaction provides a new capability for quantum interaction-enhanced matter-wave interferometry and for realizing exotic behaviors including simulations of superconductors and dynamical gauge fields.