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ILEconomy3 days ago

Former Austrian chancellor Kurz's Dream hits $3b. valuation in AI funding round

Dream, an Israeli-based company specializing in artificial intelligence and cyber-defense systems for governments and critical infrastructure, has raised $260 million in new funding, increasing its valuation to $3 billion. The funding round was led by Bicycle Capital and Group 11, with participation from several other investors. Dream focuses on 'sovereign AI'—technology designed to operate within government-controlled environments to ensure data security and reduce reliance on foreign providers. Sebastian Kurz, Dream’s president and co-founder, emphasized the growing importance of maintaining

By YONAH JEREMY BOB JUNE 16, 2026 15:50 While Israel is considered a dominant player in the cybersecurity field, and part of that means using artificial intelligence (AI) in smart ways in that arena, in the broader AI context, Jerusalem is behind and now trying to play catch-up.

On Tuesday, the government approved a new, wide-ranging series of AI policies that could spark a rally and change the lives of all Israelis in the workplace, in education, and eventually in every area of life as the world accelerates in this rapidly advancing field.

This decision is the culmination of Prime Minister Benjamin Netanyahu appointing ex-9900 intelligence chief, Brig. Gen. (res.) Erez Askal on October 12, 2025, to be the country's first AI Chief, to work alongside Israel National Cyber Directorate (INCD) Chief Yossi Karadi.

Since then, Askal has worked hard to identify the many fronts on which Israel must move forward in its use and understanding of AI, as well as to determine how best to leverage Israel's strengths over the course of a multi-year campaign on the issue.

The Jerusalem Post understands that the new AI bureau's efforts have revealed that Israel's greatest strengths regarding AI are 1) Integrating and combining cyber security and artificial intelligence to "rub off" well on each other; and 2) Edge solutions – coming up with practical new ideas for solving problems in the field, and in war, on the frontlines.

Soldiers of the IDF's Shahar Unit. (credit: IDF SPOKESPERSON'S UNIT) It is also considered a plus that Askal and INCD Chief Karadi have known each other for years from their days in Israeli intelligence, so they can work together without ego and without missing a beat.

What will the IDF's AI bureau do?

The AI bureau expects that it will help: 1) Israel implement home-developed solutions and programs as opposed to requiring foreign solutions; 2) Israeli companies have products to physically manufacture from which they can make profits; 3) Pursue regulations to create order in this new area, while avoiding over regulation which stifles innovation; and 4) Mix big data and machine learning capabilities with addressing real world problems in powerful new ways.

Following the government decision, Netanyahu said, "The purpose is clear: to establish Israel as a world leader in the area of AI because AI is not just another technology - it is a revolution. It will impact the economy, security, science, industry, health, education, and the State of Israel's international status."

Askal stated, "This decision ensures the power and achievements of Israel for the upcoming decades. In the coming years, it will become clear which countries succeed in establishing their place at the forefront of the world during the age of AI, and which will be forced to rely on the technology, infrastructure, and capabilities which others will develop."

At a conference on June 2, Askal made a major public performance, declaring, "While the great powers in the world are preoccupied with a crazy-paced arms race regarding the major layers of AI: research and development, energy, and modeling, the entire world is stuck in the embarrassing situation asking: what do we do with this tomorrow morning?"

"This is exactly where Israel's comparative advantage exists: when the giant blue Ocean of AI meets [people's] real lives. The ability to inject AI into the physical world and onto [solving] life's problems, to take an aircraft or drip irrigation and to make them 'smarter' – is a critical growth engine for us."

Why is Israel behind on AI?

One thing Askal cannot say in public, given the sensitivity of his position, is that Israel initially fell behind in AI for a number of obvious reasons.

These include that Israel: has less space to build data centers, it has less natural resources to cover the immense energy needs of such data centers, and its success in cyber security was driven in many ways by the private sector, with the government only following, whereas big AI projects need heavy government investment and interventions, which Israel's government is slower at for new projects, the Post understands.

All of this means that the AI bureau will be trying to take on a new coordinator role to facilitate the private sector working together toward clearer, more specific national AI goals, rather than only their own narrow business interests.

So the government may not build large new infrastructure projects for AI on its own, but may encourage and facilitate tens of thousands of projects, including some large ones, as well as serve as a "plumber" of sorts, trying to scrap red tape that might slow down new projects.

One project is in education, where Israeli universities, in coordination with Askal, will roll out a brand-new AI degree in October.

Computer science as a degree may not be gone, but this AI degree may start to supplant it as more relevant for the next stage of the job market.

That is at the entry level.

For Israelis already in the workplace,…

Read the full article at The Jerusalem Post
Source document: Dream CEO Shalev Hulio

3 reports

The Times of IsraelIndependentCenter3 days ago
Valued at $3 billion, Israeli cyber unicorn aims to help governments own and control their AI

Israeli AI cybersecurity firm Dream has reached a $3 billion valuation after securing $260 million in new funding. The company focuses on building AI infrastructure to help governments and critical national infrastructure protect sensitive data from cyber threats posed by nations such as Russia, Iran, North Korea, and China. Dream’s CEO, Shalev Hulio, stated that the company was founded on the premise that future cyber warfare would involve AI versus AI rather than human versus human conflict.

Bias read (Center): The article provides factual information about a technology company's growth and its mission without taking a stance on geopolitical issues or ideological positions. It quotes the CEO directly and does not exhibit biased language or selective sourcing.

Official sources cited

  • organisation Dream CEO Shalev Hulio
The Jerusalem PostIndependentCenter3 days ago
Former Austrian chancellor Kurz's Dream hits $3b. valuation in AI funding round

Dream, an Israeli-based company specializing in artificial intelligence and cyber-defense systems for governments and critical infrastructure, has raised $260 million in new funding, increasing its valuation to $3 billion. The funding round was led by Bicycle Capital and Group 11, with participation from several other investors. Dream focuses on 'sovereign AI'—technology designed to operate within government-controlled environments to ensure data security and reduce reliance on foreign providers. Sebastian Kurz, Dream’s president and co-founder, emphasized the growing importance of maintaining

Bias read (Center): The article provides factual information about a private company's fundraising and technological focus without taking a stance on political issues. It quotes a business leader discussing market trends and does not present any ideological framing or biased language.

The Jerusalem PostIndependentCenter5 days ago
Israel attempts an AI catch-up revolution as four million people prepare to change jobs - exclusive

Israel is attempting to catch up in the global AI race despite being a leader in cybersecurity. The government has approved new AI policies aimed at transforming workplaces, education, and daily life. These efforts were initiated after Prime Minister Benjamin Netanyahu appointed former intelligence officer Brig. Gen. (res.) Erez Askal as Israel's first AI Chief. Askal has identified key areas where Israel can leverage its strengths, including integrating AI with cybersecurity and developing edge solutions for real-world problems.

Bias read (Center): The article presents factual information about Israel's AI initiatives without overtly favoring any political side. It focuses on policy developments and technical capabilities rather than making value judgments or emphasizing partisan perspectives.

Official sources cited

  • government Government approval of AI policies
  • government Appointment of Erez Askal as AI Chief

Go to the primary sources (3)

The official sources this coverage is built on. Read them directly to bypass framing.

  • organisationDream CEO Shalev Hulio
  • governmentGovernment approval of AI policies
  • governmentAppointment of Erez Askal as AI Chief