Statecraft acquires Daybreak to accelerate efficiency in federal services

The acquisition will help federal agencies replace labor-intensive services with targeted, auditable AI workflows at a fraction of the cost

WASHINGTON, Sept. 24, 2026 /PRNewswire/ -- Statecraft, an AI-native federal technology startup, today announced its acquisition of Daybreak LLC, an applied AI and data analytics firm with years of experience building and operating AI systems for federal agencies.

The acquisition accelerates Statecraft's implementation of highly targeted AI workflows into federal environments, amid its mission to replace services work and endless application development that relies on large contractor teams billing by the hour.

Federal agencies spend roughly $100 billion each year on outsourced services and software procurement, paying contractors who bill more and more hours while delivering less and less value. Agencies are left understaffed and overworked on missions critical to the American people.

Statecraft was built to disrupt that model, automating workflows to free up funding and personnel for complex work where human judgment and expertise matter most.

The company's Workforce platform deploys teams of AI workers ("Inorganics") that build their own tools in service of agency missions. Each workflow is built around the agency's own rules, documents, systems, approval chains, and oversight requirements. This allows Statecraft to manage defined processes with minimal error rates, achieving real outcomes at a fraction of the cost.

Statecraft's synthetic teams write deterministic software and can review documents, validate information, check requirements, prepare forms, route approvals, assemble records, and produce reports. Government employees are always in the loop, working alongside Inorganics to shape and refine workflows.

"We want to kill the billable hour," said Alex Cohen, co-founder and CEO of Statecraft. "Agencies should not have to keep buying more labor to move the same documents through the same processes. Daybreak's experience deploying AI in live federal environments will help us move agencies faster from expensive contractor hours to accountable outputs."

In pilots, Statecraft's approach has delivered up to 90% time savings and 80% cost savings. The workflows follow agency-defined controls, retain required human review, and record the rules, actions, and approvals behind each output.

Daybreak has built custom AI applications in live government settings where security, accuracy, and reliability are essential. That experience will help Statecraft move more agencies from pilot projects to working systems.

"We built Daybreak to make AI work for government the right way, enabling deeper insights and faster results," said Manik Rath, CEO of Daybreak. "Statecraft shares that standard, and joining gives this work a bigger platform and continuity for the agencies we serve."

Rath and his leadership team will remain involved to support customers during the transition.

About Statecraft

Statecraft builds an alternative to government's dependence on consulting. Its Workforce platform combines data, applications, and AI teams to help agencies build and run the systems their missions require. Statecraft focuses on delivering outcomes and building working capability, not billable headcount.

Statecraft was co-founded by CEO Alex Cohen, who previously co-founded GovPro AI and led its acquisition by Unanet, and CTO Priansh Shah, who previously led technical programs for Palantir at the Department of State, U.S. Space Command, and the National Geospatial-Intelligence Agency.

About Daybreak LLC

Daybreak LLC is a McLean, Virginia-based applied AI, data analytics, and computer vision firm supporting federal agencies across national security, public safety, and environmental missions. Its team builds geospatial analytics, custom analytical software, and agentic AI applications used by government agencies, emergency first responders, and Fortune 500 companies to make faster, better-informed decisions. Daybreak was founded by CEO Manik Rath, a longtime government contracting executive, and CTO Jason Dalton, who leads the company's technology strategy.

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SOURCE Statecraft