The government’s AI rollout is picking up speed
Elon Musk joined Donald Trump’s administration to spearhead the Department of Government Efficiency (DOGE), aiming to streamline and overhaul the federal government by cutting costs and jobs swiftly.
Musk applies his proven five-step process—question, delete, simplify, accelerate, and automate —with automation as the ultimate goal.
His vision is for AI to handle tasks from tax reviews to legal resolutions, with David Sacks overseeing a nationwide AI rollout by July 22.
This impending shift positions the U.S. government as a leading AI adopter, creating significant opportunities for investors in overlooked automation-related companies.
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Billionaire tech entrepreneur Elon Musk joined President Donald Trump’s administration as a “special government employee” shortly after the inauguration.
Together, they launched a new initiative known as the Department of Government Efficiency, or “DOGE” for short.
DOGE’s task sounded straightforward enough: audit and overhaul the most bloated parts of the federal government.
Musk got to work fast. In the past several months, whole departments have been put under pressure.
Contracts are being canceled at breakneck speed. Grant programs are being shut down. Thousands of federal employees have been laid off.
The market and the media have reacted with shock. It seems nobody expected DOGE to cut through the red tape so quickly.
But if they’d been paying attention, they should have…
Every business Elon Musk has ever built follows the same five-step process.
To him, the government is no different.
It doesn’t matter whether he’s launching rockets, building cars, or wiring neural implants into brains. Musk swears by a framework he calls his personal “algorithm.”
He repeats it aloud so often that his employees have joked that it sounds like a religious chant.
- Question every requirement.
- Delete any part or process you can.
- Simplify and optimize.
- Accelerate cycle time.
- Automate.
Musk is applying this same algorithm to the U.S. government. We’ve all watched as steps 1 through 4 played out in rapid succession.
And it’s almost time for the final step, automation.
In the past, ‘automation’ in government meant a kiosk at the DMV or an online tax form.
Musk’s goal is for AI to do so much more.
Whether it’s reviewing Social Security applications, scanning IRS returns for fraud, checking patent filings, approving immigration documents, or even transcribing phone calls and resolving legal disputes… he sees a government that relies on AI at every turn.
As of now, there are 441 government agencies and subagencies ripe for automation. According to the official White House mandate, the entire government must adopt a fully executable AI rollout plan by July 22.
That’s the final deadline. And it’s being coordinated not by Musk himself, but by his longtime business partner and fellow “PayPal Mafia” member, David Sacks.
Sacks is the government’s de facto AI czar. He’s the one clearing the red tape. And his mission is simple: to make America the AI capital of the world.
He plans to hard-code Musk’s automation agenda into the very infrastructure of the U.S. government.
Once that plan goes into action, everything will change.
Nearly every interaction you have with the government, be it related to taxes or health care, will eventually be touched by AI.
And that means an entirely new class of companies is about to step into the spotlight.
Many AI headline-makers and tech giants have already soared thousands of percent. But the overlooked enablers are still hiding between the cracks.
The automation wave is here and the U.S. government is about to become its biggest customer.
It’s time for investors to position themselves to take advantage of this opportunity.
Best regards,
Joel Litman & Rob Spivey
Chief Investment Officer &
Director of Research
at Valens Research
