Shalev Hulio, once dubbed “Israel’s cyber bad boy,” has been working hard to remake himself. By all appearances, it’s been a big success.
Things were looking dicey a few years ago when his company, the Israeli firm NSO Group, rose to infamy. Its Pegasus spyware had been exposed as enabling human rights abuses. Eventually, NSO was blacklisted by the U.S. government, and in August 2022, Hulio resigned as CEO.
In the last two years, however, Hulio has become involved in a web of new cybersecurity ventures. He is back, it seems, and better than ever.
In November, in a video filmed at the Gaza Strip, Hulio announced his new startup, Dream Security, an AI firm focused on defending critical infrastructure.
In April, according to Israel’s largest newspaper, a co-founder of IntelEye — a company that monitors the “dark web” — identified his former NSO colleague Hulio as an investor. (Another IntelEye official later told The Intercept that Hulio isn’t a shareholder but refused to clarify further.)
Taking the helm of The Institute is the most recent step in Hulio’s makeover from being a public villain to becoming a cyberhero.
Now, Hulio is moving his cybersecurity entrepreneurism into a new arena: the academy. This month, he announced the founding of “The Institute,” a new initiative at Israel’s Ben-Gurion University of the Negev that aims to become an Israeli hub for training and research on artificial intelligence.
Hulio has described his post-NSO career as a move away from “offensive” cybersecurity work. When he launched Dream, Hulio told the press, “We decided to leave the intelligence side, offensive side if you want, and move to the defensive side.”
Taking the helm of The Institute is the most recent step in Hulio’s makeover from being a public villain to becoming a cyberhero, leading a nation’s technological education. At The Institute’s highly publicized launch he shared a stage with Israeli President Isaac Herzog.
The companies Hulio has been involved in — founded, led, launched, or reportedly invested in — feature the same rotating cast of characters. And from NSO to Dream to IntelEye, there are different, sometimes intersecting missions, but one thing is constant: All three support the Israeli government in its war effort.
Hulio had bragged in November that NSO’s Pegasus software was used to track down Israeli hostages, confirming an October report. Meanwhile, Hulio announced Dream’s founding one month after Hamas’s attack on the Gaza border to show Israel’s resilience and help the government.
IntelEye is involved in direct, offensive intelligence work. At the request of the Israeli government, the company reportedly uncovered information identifying a pair of Palestinian brothers and shutting down Hamas propaganda — leading to the killing of one brother and a police raid on the other.
Exactly what resulted from IntelEye’s work, however, is the subject of conflicting accounts. This much is obvious: The company is in the high-stakes cybersurveillance business.
“We are continuing to monitor and search for terrorist elements that could threaten the State of Israel,” NSO veteran and IntelEye co-founder Ziv Haba told Israel Hayom after his company found the Palestinian brothers. “The surveillance is extremely close, closer than you can imagine.”
“The Institute”
The launch of The Institute at Ben-Gurion University was itself marked by confusion. An article in the Jerusalem Post announcing the initiative described it as a partnership with the Israel Defense Forces’ elite cyberspying unit, known as 8200. NSO’s founders — including Hulio — and many of its employees are veterans of 8200.
Days after the initial article ran, however, all of its references to 8200 were scrubbed without any notice.
An IDF spokesperson told The Intercept, “The IDF in general and Unit 8200 in particular do not take part in the aforementioned program.” (Shmuel Dovrat, a spokesperson for Ben-Gurion University, said The Institute had not been in touch with the Jerusalem Post after the initial publication, but said, “I’m glad that they changed it because of the wrong information.”)
According to a press release, The Institute will bring together AI luminaries and run training programs and research, with Hulio and other Dream employees among its leaders. In the coming year, The Institute’s research laboratories will strengthen Israel’s hand in the tech world by collaborating with actors across the industry, according to a report in a U.K. tech news site.
“Through hard work born out of love and commitment to the state of Israel, we have built a team of the best entrepreneurs, investors and leading companies in the world to help Israel become a global leader in artificial intelligence,” journalist Sivan Cohen Saban, The Institute’s CEO, said at the launch event on May 8.
On hand at the launch, according to coverage, were officials from global firms like Microsoft and General Motors, as well as top-tier Israeli politicians, like Herzog, the president. (A spokesperson for GM told The Intercept they could not confirm the company’s attendance.)
Herzog said The Institute would help fight Israel’s isolation amid the Gaza war. “History is being made here today,” he said at the launch, in remarks later posted to YouTube in a promotional video. “There are countries that want to sever a relationship with us and only because of you, they don’t do it.”
At The Institute, Hulio is joined in leadership by Dovi Frances, co-founder of the U.S.-based venture capital firm Group 11. Marking its launch, Frances, who also led funding pushes for Dream Security, wrote on LinkedIn: “A historic day.”
“DREAM is proud to be in the forefront of AI technologies and take part in ‘The Institute,’” Tal Veksler, a spokesperson for the company, told The Intercept.
The trainings and other programs offered by The Institute will be run by employees from Dream Security and other leading Israeli tech firms.
Tomer Simon, Alon Haimovich, and Nati Amsterdam, prominent figures in the artificial intelligence industry, were among the attendees at the launch event for The Institute. The CEO, Saban, tied the founding of the organization to the October 7 attack on Israel, expressing concern for various issues in the country.
During The Institute’s launch, NSO veterans Hulio and Haba were present. Haba, who co-founded IntelEye, joined Hulio in a panel discussion on AI cyberattacks. Their collaboration at NSO ended in August 2022, with Hulio leaving the company. IntelEye’s involvement in Israel’s war efforts, including a significant cyber-takedown operation, garnered media attention.
IntelEye’s efforts led to the identification and tracking down of the Ayyash brothers, who were accused of running the Gaza Now Telegram channel. However, there were discrepancies in reports about their identities and whereabouts. Despite initial reports of Mustafa’s death, he was found to be alive in Austria. The involvement of IntelEye investors, including Hulio and Frances, in assisting Austrian authorities in locating Mustafa raised questions.
The Austrian authorities denied arresting Mustafa, stating that he is under investigation for terror financing. The details of how the authorities obtained information about the Ayyash brothers remained undisclosed. Mustafa took to social media to strongly denounce the police raid and assert his innocence. On the other hand, an Austrian Ministry of the Interior spokesperson mentioned being in contact with international partners but did not confirm if Israelis had provided any information.
According to Israel Hayom, Gaza Now’s Telegram and WhatsApp channels were reportedly shut down, but they are still active with a large following. Haba from Israel Hayom acknowledged the efforts of individuals who helped in limiting the spread of negativity by Gaza Now. He also praised Hulio and Frances, referring to them as dedicated Zionists with Israel’s best interests at heart.
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