How a single spyware tool became a weapon of international diplomacy
In short: NSO Group's Pegasus spyware can infiltrate smartphones without the user ever clicking a link. While the firm claims it only serves authorized governments to fight crime, reports link the technology to the surveillance of journalists, activists, and even the murder of Saudi dissident Jamal Khashoggi.
Niv Karmi, Shalev Hulio, and Omri Lavie established NSO Group in 2010, focusing on zero-click surveillance. The company's core product, Pegasus, relies on discovering 'zero-day' exploits—security vulnerabilities unknown to the device manufacturer—to maintain continuous, undetectable access to mobile devices. Much of the company's research team is composed of former Israeli military intelligence personnel, many from the highly selective Unit 8200. The firm's founders originally developed a different tool for mobile tech support. This earlier product required users to grant permission before access was enabled.
The Israeli government classifies Pegasus as a military export, meaning its sale requires state approval. This has turned the technology into a significant diplomatic tool. The Israeli state has used NSO's products to nurture security ties with nations like Morocco, the UAE, and Saudi Arabia, and even played a role in negotiating the Abraham Accords. Conversely, Israel has blocked sales to countries like Estonia and Ukraine to avoid damaging relations with Russia.
The company's financial and legal standing has fluctuated wildly. After being acquired by Francisco Partners for $130 million in 2014, NSO was valued at approximately $1 billion by 2019. However, the company faced severe setbacks after being added to a U.S. Entity List in 2021, which effectively banned U.S. companies from supplying it. This blacklisting, combined with financial instability and internal disputes, left the firm in perilous straits by late 2021, with creditors describing the company as insolvent. In 2022, L3Harris Technologies attempted to acquire the firm's technology and staff. These negotiations were eventually abandoned following public condemnation from White House officials.
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Sources
- Summary by Intellect · source: NSO Group
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