Sovereign AI Cyber Defense Secures Major Funding
Dream Security Secures $260M Funding, Reaching $3B Valuation for Sovereign AI Platforms
Key Points
Dream said it employs about 350 people across Tel Aviv, Abu Dhabi and Vienna, underscoring how quickly it has built an international team to support its “sovereign AI” and cyber-defense push.
Dream also said it has raised $412 million to build sovereign AI infrastructure for governments (a figure beyond the single $260 million round mentioned elsewhere).
The company’s origin story includes a third co-founder: Dream was created by Shalev Hulio (former NSO Group CEO) together with Sebastian Kurz and Gil Dolev, according to reporting on the firm’s background.
While the summary describes a planned data center, CryptoBriefing reports that Dream launched what it called “Israel’s first sovereign AI data center” near Modi’in in February 2026, designed to handle “mission-critical AI workloads for government operations.”
Dream’s co-founders framed “sovereign AI” in strategic terms in interviews: Sebastian Kurz told The Jerusalem Post that governments are shifting from “asking whether to use AI” to deciding “how to maintain control over it,” adding, “Nations will become supernations if they use AI.” Shalev Hulio similarly emphasized, “The future of a nation should never depend on technology it does not control,” and described Dream as offering “AI in a box.”
Israeli AI cybersecurity firm Dream raised $260 million at a $3 billion valuation, nearly tripling its worth from $1.1 billion in early 2025, according to MarketWatch. The round was co-led by Bicycle Capital and Group 11, with Bain Capital Ventures, Antler, and Tru Arrow Partners also participating.
Dream reported about $300 million in total contract value since commercial operations began in late 2024, The Next Web reported. The company plans to expand its AI-driven cyber-defense platforms across Europe, the Middle East, Asia, and the Americas.
From NSO Group Ashes to $3B Sovereign AI Startup
Dream was co-founded by Shalev Hulio, former CEO of NSO Group — the firm behind the controversial Pegasus spyware — alongside former Austrian Chancellor Sebastian Kurz and tech veteran Gil Dolev. Hulio has reframed himself from offensive cyber to defensive AI. He says: "The future of a nation should never depend on technology it does not control." He calls Dream's offering "AI in a box."
Kurz brings the diplomatic muscle, helping Dream access European and Middle Eastern government clients. He told The Jerusalem Post: "Nations will become supernations if they use AI correctly. The question for governments is no longer whether to use AI, but how to maintain control over it." Dream now employs about 350 people across Tel Aviv, Abu Dhabi, and Vienna.
Governments Fear Foreign Kill-Switches — Dream Sells the Fix
"Sovereign AI" means governments run their own AI systems locally — not on a U.S. or Chinese cloud that could be switched off or monitored remotely. Two forces drove demand: U.S. export controls on advanced chips and AI models, and growing fear of what critics call a "digital colonial" dynamic, where foreign tech firms control critical national systems.
Dream targets the highest-stakes buyers: government ministries and operators of critical infrastructure like power grids and water systems. Its platforms offer predictive threat detection and real-time protection for these networks. Business Insider Africa noted that African governments are also drawn to Dream's pitch as they seek to reduce reliance on foreign-controlled AI.
Israel's First Sovereign AI Data Center Opens Near Modi'in
In February 2026, Dream launched what CryptoBriefing called "Israel's first sovereign AI data center" near Modi'in. The facility handles mission-critical AI workloads for government operations. It bypasses standard commercial cloud infrastructure entirely, keeping sensitive data on domestic soil.
Dream has raised $412 million in total to build sovereign AI infrastructure for governments — a figure beyond the $260 million round alone. Additional data centers are planned for Europe and Asia in 2027. Investors at Group 11 have called Dream the "Cisco of the AI age," arguing every nation will eventually need its own sovereign AI stack.
Hulio's NSO Past Casts a Shadow Over the Valuation Surge
Dream's valuation jump — from $1.1 billion to $3 billion in roughly 17 months — reflects what analysts call a "war premium" on technology that can operate independently during conflict or diplomatic breakdowns. But Hulio's history at NSO Group remains a live concern. Critics in the European Parliament warn that "defensive" AI tools can be repurposed for surveillance or predictive policing against political dissidents.
WEEX reported that Dream's defense-and-intelligence connections give it deep access to state-level networks — an asset investors clearly value. But the same connections make the company a potential geopolitical flashpoint. As state-linked AI firms scale fast, the line between protecting a nation and watching its citizens can blur quickly.
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