Abu Dhabi-based AI firm hits $3bn valuation after $260m raise

Abu Dhabi: Dream, the sovereign artificial intelligence and cyber defence company with a major operational base in Abu Dhabi, has raised $260 million in fresh funding, lifting its valuation to $3 billion and underscoring growing investor confidence in a technology sector increasingly focused on national control over AI systems and sensitive data.

The funding round was co-led by Bicycle Capital and Group 11, with participation from Antler, Bain Capital Ventures and Tru Arrow Partners. The latest investment brings Dream’s total capital raised to $412 million, just three years after the company was founded.

The announcement comes as Gulf governments accelerate efforts to build sovereign AI capabilities, seeking to reduce reliance on foreign technology providers for critical digital infrastructure. The company says it is already working with multiple government clients across the region and has secured nearly $300 million in total contract value globally since launching commercial operations in late 2024.

“The defining question for governments is no longer whether they will use AI, but whether they will own it,” said Sebastian Kurz, Dream’s President and Co-Founder and former Chancellor of Austria.

The concept of sovereign AI – where governments retain control over the infrastructure, data and intelligence systems powering artificial intelligence applications – is gaining traction across the Gulf as countries invest heavily in digital transformation, cybersecurity and emerging technologies.

Dream’s platform combines three core offerings designed for government and critical infrastructure clients. Its cyber defence platform, Sphere, is aimed at protecting national infrastructure from increasingly sophisticated cyber threats, including attacks targeting energy facilities, financial systems and water networks.

Another product, Hero, functions as an autonomous AI-powered security researcher that continuously searches for vulnerabilities in digital systems, while Atlas, the company’s newest sovereign AI platform, enables governments to consolidate and analyse sensitive data across ministries and state entities without that information leaving government-controlled infrastructure.

“Every nation has data. Few can protect it. Fewer can use it. Sovereign AI is the key,” said Dream Co-Founder and Chief Executive Officer Shalev Hulio.

The fresh capital will be used to accelerate existing deployments and expand Dream’s presence across the Middle East, while supporting growth in Europe, Asia and the Americas.

Investors backing the company view the convergence of AI, cybersecurity and government technology as one of the most significant opportunities in the technology sector. “Dream has built a unique platform at the intersection of AI, cybersecurity, and government technology,” said Shu Nyatta, Co-Founder and Managing Partner of Bicycle Capital.