The co-founder of NSO Group, the spyware firm behind Pegasus, is back with a new bet. Shalev Hulio's startup Dream Security has seen its valuation triple to $3 billion in just four months, according to a TechFunding News report. The company is selling governments on a different kind of technology: sovereign artificial intelligence.
Dream Security provides AI systems designed to operate within a nation's own infrastructure, keeping data and control local. The rapid valuation increase reflects strong demand from sovereign clients seeking secure AI capabilities. Hulio's previous enterprise, NSO Group, was blacklisted by the U.S. Commerce Department and faced global backlash over surveillance abuses.
The move taps into a growing market for sovereign AI, as governments worldwide seek to reduce dependence on foreign tech giants. Countries from India to Saudi Arabia are investing in domestic AI stacks, creating opportunities for vendors who promise data sovereignty. Dream Security appears to be capitalizing on this trend, offering defense and intelligence-grade AI tools.
For the startup ecosystem, this signals that controversial founders can still attract capital if they pivot to high-demand sectors like sovereign AI. It also raises questions about oversight, given Hulio's track record. The founder's ability to secure government contracts will face scrutiny from privacy advocates and regulators.
Hulio has not commented publicly on the new valuation or the shift in focus. The company declined to disclose its investor base or specific government clients, citing confidentiality agreements.