Found it! For reference, I originally heard this in the Some More News episodes about “Uncomplicating the complicated situation in the West Bank”, but I can’t find those episodes at the moment.
> As far back as December 2012, Mr. Netanyahu told the prominent Israeli journalist Dan Margalit that it was important to keep Hamas strong, as a counterweight to the Palestinian Authority in the West Bank. Mr. Margalit, in an interview, said that Mr. Netanyahu told him that having two strong rivals, including Hamas, would lessen pressure on him to negotiate toward a Palestinian state.
> As far back as December 2012, Mr. Netanyahu told the prominent Israeli journalist Dan Margalit that it was important to keep Hamas strong, as a counterweight to the Palestinian Authority in the West Bank. Mr. Margalit, in an interview, said that Mr. Netanyahu told him that having two strong rivals, including Hamas, would lessen pressure on him to negotiate toward a Palestinian state.
https://www.nytimes.com/2023/12/10/world/middleeast/israel-q...