Stealth startup Cathedral raises $160M at $1.4B valuation to build AI cyber tools for the US military

What's the deal? Cathedral, a startup building AI tools to expand US military cyber capabilities, has raised $160 million at a $1.4 billion valuation, according to three sources cited by Reuters. Andreessen Horowitz and Sequoia led the round, with both firms taking board seats.

Who's behind it? The company was co-founded by former Department of Government Efficiency (DOGE) staffers Gavin Kliger, Luke Farritor, Marko Elez, and Jack Stein. Kliger recently served as chief data officer at the Pentagon; Farritor and Elez both previously worked at SpaceX.

What's the endgame? Cathedral aims to secure US government contracts for AI-driven offensive and defensive cyber operations against adversaries such as China. It is also looking to acquire a data center, or partner with a provider, to supply dedicated compute for those operations.

Why now? The round reflects investor enthusiasm for startups founded by DOGE alumni, whose 2025 cost-cutting saw more than 250,000 people leave the federal workforce. In June 2026, Andreessen Horowitz also led an investment in Special, another DOGE-team startup applying similar cost-cutting to the corporate world.

What could go wrong? Cathedral's deep ties to the Trump administration cut both ways. The company faces risks from any change in administration, plus potential scrutiny over government contracts if Democrats retake the House or Senate in the November 2026 midterms.

The signal: The deal shows how quickly former government insiders are converting influence into venture-backed businesses — and how eagerly top firms are funding them. It also underscores the Pentagon's growing willingness to partner with startups on national security goals.

Read more: Reuters