A team of former Department of Government Efficiency staffers has launched a new artificial intelligence startup targeting U.S. military cyber contracts, according to three sources with knowledge of the situation who spoke with Reuters.
The company, known as Cathedral, was established in recent months with the goal of winning government contracts to enhance AI-powered cyber operations — both offensive and defensive — directed at U.S. adversaries including China, two of those sources said. As part of its strategy, the company is seeking to either purchase a data center or partner with one to provide dedicated computing power for those cyber operations.
Cathedral was co-founded by former DOGE staffers Gavin Kliger, Luke Farritor, Marko Elez, and Jack Stein. The company recently completed a $160 million funding round that placed its valuation at $1.4 billion, three sources confirmed. Venture capital giants Andreessen Horowitz and Sequoia Capital led the investment, and both firms are taking seats on the company’s board, according to two of the sources.
The fundraising reflects a growing appetite among investors for startups created by DOGE veterans, who spent much of 2025 reshaping the federal government through layoffs and spending cuts that resulted in more than 250,000 people departing the federal workforce. Last month, Andreessen Horowitz also led a funding round for another DOGE-connected startup called Special, which aims to bring similar cost-cutting approaches to the private sector, according to a post on the firm’s website.
While Cathedral’s name, valuation, and mission had not been previously disclosed publicly, nor had Elez’s involvement, Vanity Fair had earlier reported that some of the other founders were working on an AI-focused national security venture.
A spokesperson for Cathedral declined to offer any comment. Andreessen Horowitz and Sequoia Capital did not respond to media inquiries.
The Cathedral founding team has deep connections to the Trump administration and national security circles, including the Pentagon. Until recently, Kliger served as the Pentagon’s chief data officer, where he was involved in the department’s high-profile legal dispute with Anthropic over military use of its AI technology, according to multiple sources familiar with the matter.
Farritor, a former SpaceX intern, led cost-reduction efforts at the General Services Administration during his time at DOGE. Elez also came from SpaceX before joining DOGE, where he worked within the U.S. Treasury Department — a role that drew concern from a federal judge after he accessed highly sensitive information. Elez resigned from DOGE after the Wall Street Journal reported on racist posts he had made on a social media account, but was later brought back after President Donald Trump and Vice President JD Vance publicly supported his reinstatement.
One source said Cathedral is well-positioned to land significant government contracts and partnerships, particularly as the Pentagon and agencies such as the Office of Strategic Capital have become increasingly active in working with startups on national security initiatives.
However, the company’s close ties to the current administration also present risks. Any shift in political power — such as Democrats regaining control of the House or Senate following the November midterm elections — could bring increased scrutiny to the company’s government contracts.
