Statecraft acquires Daybreak to automate federal services work
- Statecraft announced its acquisition of Daybreak LLC on Sept. 24, 2026.
- Daybreak is a McLean, Virginia-based applied AI and data analytics firm.
- Statecraft says pilots delivered up to 90% time savings and 80% cost savings.
- Financial terms: not disclosed.
WASHINGTON, D.C., UNITED STATES — Statecraft, an AI-native federal technology startup, has acquired Daybreak LLC, an applied AI and data analytics firm, as it looks to replace services work that relies on large contractor teams billing by the hour.
Federal agencies spend roughly $100 billion each year on outsourced services and software procurement, a market Statecraft aims to disrupt with AI workflows built around each agency’s own rules and approval chains. Financial terms were not disclosed.
Daybreak brings live federal AI deployments
Daybreak has built custom AI applications in live government settings where security, accuracy and reliability are essential, according to a press release.
Based in McLean, Virginia, Daybreak supports federal agencies across national security, public safety and environmental missions with geospatial analytics, custom analytical software and agentic AI applications.
“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.”
“Statecraft shares that standard, and joining gives this work a bigger platform and continuity for the agencies we serve,” said Manik Rath, CEO of Daybreak.
Rath and his leadership team will remain involved to support customers during the transition.
AI workers target federal back-office tasks
Statecraft’s Workforce platform deploys teams of AI workers, which it calls “Inorganics,” that can review documents, validate information, prepare forms, route approvals and produce reports, with government employees kept in the loop.
In pilots, the approach delivered up to 90% time savings and 80% cost savings, the company said.
Statecraft was co-founded by Cohen, who previously co-founded GovPro AI and led its acquisition by Unanet, and chief technology officer Priansh Shah, who led technical programs for Palantir.
The deal targets the hourly-billed services model that federal contractor teams rely on.
For providers selling back-office and business process outsourcing (BPO) work to federal agencies, AI workflows priced on outputs rather than hours signal a shift in how that work may be bought.
Statecraft is positioned to pitch agencies on replacing contractor hours with auditable AI workflows, a model buyers comparing the top AI outsourcing companies will weigh.
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