Shalev Hulio, co-founder and former chief executive of NSO Group—the Israeli company behind the Pegasus spyware—has launched a new cybersecurity venture called Dream, urging governments to develop and deploy their own artificial intelligence (AI) models instead of relying on US-based technology providers. Hulio, who left NSO Group in 2022 after a turbulent period marked by legal and ethical controversies, argues that national control over AI infrastructure is essential to safeguarding sensitive government data and critical infrastructure.

Dream, established in 2022 with former Austrian chancellor Sebastian Kurz as a co-founder, focuses on creating AI-powered cybersecurity tools specifically tailored for government use. The company’s product lineup includes Sphere, a national-scale cyber defense system designed to protect against cyberattacks by hostile states, and Hero, an AI-driven tool that autonomously identifies and patches software vulnerabilities. In August, Dream’s researchers reported detecting what they described as the first fully “end-to-end autonomous” cyberattack targeting a government entity, an event they had anticipated would occur within five years but which materialized in three and a half.

In June, Dream launched Atlas, an AI platform intended to enable governments to build and operate customized AI models on their own hardware, thereby reducing reliance on external cloud services predominantly owned by US firms. Unlike broad large language models, Atlas is trained on a government’s proprietary data and designed for specific functions such as analyzing classified intelligence or enhancing procurement processes. Hulio maintains that such narrowly focused models are more cost-effective to run and better aligned with government requirements.

Despite his association with Pegasus—a tool widely criticized for enabling invasive surveillance on politicians, journalists, and activists—Hulio defends his track record, asserting that NSO’s products helped governments prevent terror attacks and save lives. However, Pegasus sparked international condemnation, including from the United Nations special rapporteur on free speech, who in 2020 called on Hulio to implement stronger safeguards to prevent misuse. The US government blacklisted NSO Group in November 2021, and the company also lost a landmark lawsuit filed by WhatsApp over exploits used in Pegasus.

Dream, with headquarters in Tel Aviv and offices in Vienna and Abu Dhabi, has expanded rapidly to around 350 employees. It has secured more than $400 million in funding, achieving a valuation of $3 billion as of June. Investors include Bain Capital Ventures and Tau Capital, a UAE-backed firm associated with Sheikh Tahnoon bin Zayed al-Nahyan, the country’s national security adviser. Although Dream does not publicly disclose its government clients, Hulio stated that its cybersecurity solutions have been sold to over a dozen countries across Europe, Asia, and the Middle East.

Hulio emphasizes that building trust and confidence with government clients is as crucial as the technology itself. He asserts that governments face significant risks by depending on foreign AI providers who might restrict access or control critical infrastructure, reinforcing his position that sovereign control of AI systems is a national security imperative.