Former Pegasus Founder Urges Nations to Build Sovereign AI for Security

Shalev Hulio, the former CEO and co‑founder of the Israeli spyware firm NSO Group, has called on governments to develop their own artificial‑intelligence models instead of relying on U.S. companies. Hulio, who created the Pegasus spyware that targeted politicians, journalists and business leaders worldwide, now co‑founds Dream, an AI cyber‑defence startup.

In an interview with the Financial Times, Hulio warned that “every government should have its own model” and that handing data to foreign AI firms risks losing control over critical infrastructure. He cited the need for national security and the ability to run models on limited hardware, noting that Dream’s solutions can operate on a handful of GPUs.

Dream, launched in 2022 with former Austrian Chancellor Sebastian Kurz, offers a portfolio that includes an AI‑enhanced national‑scale cyber‑defence system, a vulnerability‑discovery platform, and a sovereign‑AI platform that trains on government data. The company has raised $400 million, was valued at $3 billion earlier this year, and has sold products to more than a dozen countries.

Hulio’s stance reflects a broader debate over dependence on U.S. tech giants. While Pegasus was used to prevent terror attacks, it also drew criticism from the UN and EU for mass surveillance. Dream’s approach aims to give governments tighter control over AI while keeping costs down.

Practical implications include the need for secure data pipelines, regulatory frameworks for AI sovereignty, and verification of claims through independent audits. Governments can assess Dream’s offerings by reviewing technical specifications, conducting pilot projects, and ensuring compliance with local data‑protection laws.