US military AI startup founded by ex-DOGE staff raises $160m
Four former US government cost-cutters have raised $160 million for an AI military cyber firm, highlighting a new breed of well-connected American defence contractors that European rivals will soon face.
Cathedral, a stealth military cybersecurity startup, has raised $160 million at a $1.4 billion valuation. The funding round was led by Andreessen Horowitz and Sequoia Capital, with both venture firms taking board seats. The company was founded by four former staffers from the Department of Government Efficiency: Gavin Kliger, Luke Farritor, Marko Elez, and Jack Stein.
The startup plans to secure US government contracts for AI-driven offensive and defensive cyber operations, explicitly targeting adversaries including China. To support these operations, Cathedral is seeking to acquire or partner with a data centre provider for dedicated computing power. Kliger, who previously served as the Pentagon’s chief data officer, was involved in the department’s legal battle with Anthropic over the military's use of its Claude AI model.
The $1.4 billion valuation is notable because the company has no disclosed revenue or contracts. Instead, investors are betting on the founders' deep ties to the Trump administration and national security officials. This funding underscores a broader trend of DOGE alumni converting their recent government access into venture capital.
For European defence ministries and contractors, Cathedral represents the latest escalation in America's rapidly capitalizing AI-military sector. More than 250,000 people left the US federal workforce during DOGE’s 2025 cost-cutting campaign, and the architects of that effort are now building companies to sell services back to the government they reshaped. European competitors, many of whom are still navigating fragmented procurement processes across EU member states, risk falling further behind if US defence tech continues to attract capital at the pace of AI laboratories.
The broader market is already showing this momentum. Anduril, another US defence tech firm, recently raised $5 billion at a $61 billion valuation. The White House further signalled its priority in this space this month by launching Gold Eagle, an AI-powered cyber vulnerability clearinghouse. Cathedral is positioning itself to capitalise on that push, though whether a team of former cost-cutters can deliver enterprise-grade military software remains an open question that will be tested by contracts rather than connections.
