Dream, an Israeli startup that builds AI-driven national cyber defense systems for governments, has raised $260 million at a $3 billion valuation as it pushes into Latin America, a region whose leaders are newly eager to buy Israeli security technology.
The fundraise, first reported by Bloomberg, positions Dream to sell custom AI cybersecurity platforms to governments and state-owned enterprises across a region that security researchers describe as chronically underdefended. The company's expansion is being supercharged by a wave of political change, with several newly elected leaders moving closer to Israel. For more breaking AI news on how startups are winning government contracts, follow our ongoing coverage.
A Familiar, and Controversial, Founder
Dream was co-founded by Shalev Hulio, who previously co-founded NSO Group, the Israeli spyware maker whose Pegasus software became the center of a global surveillance scandal. NSO Group was sued by Apple and blacklisted by the U.S. Commerce Department in 2021 over allegations that its tools were used to target journalists, activists, and government officials. Hulio's involvement inevitably colors how Dream is perceived, though the new company says its mission is defensive rather than offensive.
Where NSO built tools to penetrate devices, Dream says it builds AI platforms that protect government networks, energy grids, and state-owned enterprises from intrusion. The technology draws on Israeli military-grade cyber expertise to detect and respond to sophisticated threats.
Why Latin America, and Why Now
Latin America and the Caribbean have the world's lowest average cybersecurity score, at 10.2 out of 20, according to data cited in Bloomberg's reporting. For years, governments across the region underinvested in digital defenses, leaving critical infrastructure from energy grids to public health systems highly exposed.
That neglect is colliding with a surge in cybercrime. Cartels and organized crime groups are increasingly turning to ransomware and data extortion, while government corruption frequently involves digital financial crime. Hulio argues that chronic underinvestment has made the region a prime target, and that recently elected leaders focused on law enforcement are motivated to act.
"Latin America is the big focus for the company now," Hulio told Bloomberg. "The political environment will now allow this. You have great leaders in Latin America."
Political Shifts Open the Market
The market opportunity is being unlocked by a string of political realignments. Colombia's president-elect, Abelardo De la Espriella, won the presidential runoff last month and takes office August 7. He has called for closer ties with Israel, a sharp reversal from his predecessor Gustavo Petro, who cut relations in 2024. Israeli President Isaac Herzog has already discussed rebuilding ties with De la Espriella.
Argentina's President Javier Milei has gone further, positioning his country as a lightly regulated hub for artificial intelligence and a stalwart ally of Israel. Together, the shifts create a corridor of governments that are both ideologically aligned with Israel's security establishment and acutely aware of their own digital vulnerabilities.
Dream says it is already helping several nations in the region deal with cyberattacks, though Hulio declined to name them.
What Comes Next
The company plans to choose a location for its first Latin American office in the coming weeks, weighing Rio de Janeiro, Buenos Aires, Mexico City, and Bogota. The choice of city will signal where Dream sees the deepest immediate demand and the strongest political tailwinds.
The startup will sell cybersecurity products directly to governments and state-owned enterprises, betting that a combination of Israeli engineering pedigree and AI-powered threat detection can win contracts that traditional Western vendors have struggled to secure in the region.
The Risks Behind the Bet
Dream's strategy is not without vulnerabilities. Its expansion depends on sustaining political alignment in a region where leadership can change quickly and unpredictably, as Colombia's abrupt pivot from Petro to De la Espriella illustrates. Tying a business pipeline to election outcomes is inherently fragile.
The company also carries the reputational weight of its founder's NSO Group legacy. Governments and civil liberties groups are likely to scrutinize Dream's contracts, particularly when the products are sold to states with checkered human rights records. Defensive cyber tools and surveillance capabilities can blur, and Hulio's name guarantees that critics will watch closely.
Nonetheless, the $260 million raise signals that investors see a durable market. The $3 billion valuation places Dream among the most richly valued private cybersecurity companies, reflecting confidence that demand for AI-powered defense will only intensify as state-sponsored hacking and criminal extortion grow more sophisticated. The company is competing in a crowded field that includes established Israeli security vendors and a new generation of AI-native startups, but its government-only focus and offensive-intelligence pedigree give it a distinct pitch.
Decades of underinvestment have left Latin America's digital infrastructure exposed, and the same AI techniques transforming offensive hacking are now being turned toward defense. Dream is betting that governments will pay handsomely to close that gap.
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