The Real DOGE Era Starts Now

By Joel Litman, chief investment officer, Altimetry

Elon Musk may have moved on… but the DOGE transformation is just getting started…

Musk made plenty of headlines when he officially stepped away from his government role last month. He’d been leading the Department of Government Efficiency (“DOGE”) since Donald Trump’s inauguration in January.

His departure – and the social media battle with the president that followed – prompted many to assume DOGE was winding down.

But it’s not that simple. Federal workers say DOGE-style initiatives are ramping up across at least six agencies.

As a recent Wired article put it, “The whole government is DOGE now.”

Musk’s exit isn’t the end of the DOGE push. In fact, it marks the beginning of the agency’s most important phase… the one that matters most to long-term investors.

Beneath the headlines, a software revolution is taking shape…

DOGE is evolving from a political spectacle to a data infrastructure overhaul. It’s no longer focused on Musk’s “chainsaw” tactics.

Now, it’s getting to work… embedding tools and processes to make the federal government run on data.

Wired reports that staffers once considered temporary are now full-time employees. One such employee is the 19-year-old coder who was initially brought in under a 130-day term. He has transitioned into a permanent government role within the Office of Personnel Management.

The team is still building systems to parse sensitive government data, ranging from Social Security records to immigration databases.

These tools are now helping agencies catch fraud, fix broken processes, and streamline how departments share information.

Of course, there’s still plenty of pushback. Just last month, a judge deemed DOGE’s attempted takeover of the United States Institute of Peace unlawful.

But the fact remains… the U.S. government spends nearly $95 billion annually just on IT. A significant chunk of that goes toward data storage. And the number is growing.

Federal agencies are sitting on an ocean of underused data…

And like it or not, DOGE 2.0 is getting things done. It’s the department setting up dashboards, AI assistants, and search tools built to work across department lines.

There’s still a long road ahead… which means a lot more spending on updated technology. Agencies like the Social Security Administration are still working with DOGE to hire analysts and data scientists to make these new systems work.

Back in April, my team and I flagged several overlooked AI businesses in a great position to help the government’s AI transition. All of them have taken off since then.

And if you missed out the first time around, it’s not too late. These stocks are still below our recommended buy prices as we go to press. We expect shares to pop even higher as a crucial July 22 catalyst approaches.

But your window of opportunity is closing fast. I urge you to act quickly… The market doesn’t give second chances like these very often. Get the details here.

The story hasn’t changed, even without Musk. The government will keep adopting AI technology faster than ever before. It’s going digital because it has to.

And that shift is creating an opening for the handful of tech firms that know how to deliver.

Regards,

Joel Litman
June 17, 2025