DOGE Alumni Launch AI Startup To Target Waste On Main Street – And Already Have Their First Target

Two alumni of the Department of Government Efficiency are bringing their cost-cutting experience from Washington to the private sector, launching Special, a startup that aims to harness artificial intelligence to wring inefficiencies out of what it describes as America’s $10 trillion Main Street services economy.

Nate Cavanaugh and Justin Fox spent much of 2025 at DOGE, where they spearheaded the Small Agencies team. Their government stint, under the high-profile effort led by SpaceX and Tesla CEO Elon Musk, contributed to approximately $215 billion in estimated savings. The pair departed in September 2025.

In the spirit of DOGE, Figure Health plans to open source all of its billing claims, allowing the public to have full visibility into our Medicare and Medicaid…

– Nate Cavanaugh (@natecavanaugh) June 2, 2026

“Similar to the government, Main Street is massive, highly unoptimized, and provides essential services to Americans. One needs to look no further than childcare learning centers in Minnesota or hospice businesses in California to find immense waste at the state level from businesses that benefit from taxpayer dollars,” the founders wrote in their announcement. “AI provides a generational opportunity to transform the efficiency of these businesses, root out waste, and deliver a great customer experience for American taxpayers. Through this process, we believe we can set a new standard for how these businesses should operate.”

Special is reportedly building what it calls SpecialOS, an operating system that integrates frontier AI models with proprietary tools to automate manual tasks like billing, scheduling, and insurance processing. Instead of licensing the technology broadly, the company plans to vertically integrate by acquiring and operating businesses in targeted industries, allowing it to control deployment and outcomes.

The first product, Figure Health, focuses on senior care and has already secured its first acquisition in Texas, a provider serving more than 1,400 patients and employing hundreds of nurses, according to the company. The plan is to use AI efficiencies to raise nurse pay, easing labor shortages while improving care quality. Figure Health intends to open-source its Medicare and Medicaid billing claims.

Special has attracted notable backing in a financing round led by Andreessen Horowitz, with participation from DOGE alumni and allies including Steve Davis, as well as Coinbase’s Brian Armstrong and Palantir’s Shyam Sankar.

“The name Special pays tribute to those we believe are the greatest movers of society: the builders, the creators, the people who put it all on the line and just go for it. Special pledges allegiance not only to the United States, but to those in the arena – the ones courageous enough to move the world forward,” Cavanaugh and Fox said.