NEW YORK, July 22 - A group of ex-DOGE staffers have launched a startup focused on applying artificial intelligence to expand U.S. military cyber capabilities and have closed a significant financing round that places the company at unicorn valuation, according to three sources familiar with the matter.
The company, operating under the name Cathedral, was formed in recent months with an explicit strategy to pursue contracts from U.S. government agencies to develop and deploy AI-driven cyber operations. Two of the sources said the business will pursue both offensive and defensive cyber capabilities targeted at U.S. adversaries, naming China as an example.
As part of Cathedral’s operational plan, the company is exploring options to secure high-capacity compute resources. That includes seeking to acquire a data center or form a partnership with an existing data center operator that can provide dedicated compute power to support the cyber operations the firm intends to run.
Cathedral’s founding team is composed of former Department of Government Efficiency staffers Gavin Kliger, Luke Farritor, Marko Elez and Jack Stein. In recent weeks the company closed a $160 million funding round that valued the startup at $1.4 billion, three sources said. Venture firms Andreessen Horowitz and Sequoia Capital led the financing, and two of the sources said both firms have taken board seats.
The financing highlights strong investor enthusiasm in ventures formed by DOGE alumni. During much of 2025, DOGE-affiliated efforts were associated with major personnel changes and cost-reduction initiatives across the federal government that led to more than 250,000 departures from the federal workforce, according to the information provided.
One of the venture firms, Andreessen Horowitz, also recently led an investment into another startup founded by DOGE alumni called Special, which intends to export DOGE-style cost-cutting approaches to private-sector companies, according to a blog post on Andreessen Horowitz’s site.
Founders and public profile
Several aspects of Cathedral had not been previously disclosed, including the company’s valuation, its chosen name, its stated mission, and the involvement of Marko Elez, the sources said. An earlier report by Vanity Fair had noted that the other founders had initiated an AI-focused national security company.
A Cathedral spokesperson declined to comment on the financing or the firm’s plans. Requests for comment sent to Andreessen Horowitz and Sequoia Capital also went unanswered, the sources said.
Backgrounds of key founders
- Gavin Kliger most recently served as the chief data officer at the Pentagon. Sources said he was involved in the department’s public legal dispute with Anthropic concerning how the company’s AI technology would be used by the military.
- Luke Farritor previously interned at SpaceX and was responsible for overseeing cost-cutting efforts at the General Services Administration during his time with DOGE.
- Marko Elez worked at SpaceX before joining DOGE and had a role at the U.S. Treasury Department while at DOGE. According to the sources, a judge raised concerns about Elez after he accessed highly sensitive material. Elez resigned from DOGE after racist posts on a social media account were reported by the Wall Street Journal, and was later rehired following public advocacy for his reinstatement by President Donald Trump and Vice President JD Vance.
Market and contracting prospects
One source said Cathedral could be in a position to win substantial government contracts and partnerships. That possibility comes as the Pentagon and entities such as the Office of Strategic Capital have become more active in collaborating with startups to pursue national security objectives.
However, the company’s prominent ties to the Trump administration may expose it to political risk. Sources cautioned that shifts in the administration or increased scrutiny over government contracting if Democrats regain control of the House or Senate after the November midterm elections could affect Cathedral’s prospects.
This developing startup sits at the intersection of venture capital, advanced AI, and defense contracting, and its emergence underscores how former government efficiency officials are translating their experience and network into private-sector ventures aiming to serve national security customers.