Top 5 gov startups

Updated: Feb 16, 2026
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1
Domyn
Country: Italy | Funding: €40M
iGenius develops enterprise AI platform that allows to create and manage AI applications and agents via centralized control system. iGenius AI agents operate in a companie's closed loop and adapt to specific business context. iGenius is also developing its own enterprise LLM model with an open enterprise license. Domyn models are designed for industries with strict compliance standards, such as financial services, public sector and heavy industry. They are trained in the FP8 format, optimize the use of computing resources, accelerate computation and reduce costs and energy consumption. Continuous training on company's own data allows the language model to incorporate domain-specific knowledge and adapt to the organization's requirements. The architecture of Domyn language models is designed to meet the highest security and compliance standards in regulated sectors.
2
Aaru
Country: USA | Funding: $50M
Aaru creates AI models for social simulation and prediction that recreate the world using multi-agent approach. The startup's predictive model generates thousands of AI agents, each of which mimics human behavior using publicly available and proprietary data. For example, a model could include senior executives from corporations and federal organizations, simulating their decisions, and modeling the behavior of citizens or customer segment reactions. Aaru replaces traditional marketing research methods, which typically involve surveys and focus groups, by using agents to predict how groups in specific demographics or geographic regions will react to future events. The company also creates models for political parties and the public sector, predicting election results, candidate selection for public office and war victories. The company's clients include Accenture, EY, Interpublic Group and political campaigns.
3
Reflection AI
Country: USA | Funding: $2.1B
Reflection AI, originally created as a coding agent platform, now positions itself as an open-source alternative to leading AI companies like OpenAI and Anthropic, and as a Western counterpart to Chinese AI companies like DeepSeek. It is building a large-scale LLM and reinforcement learning platform capable of training massive mixed-expert (MoE) models - the technology that has enabled DeepSeek to significantly reduce training and inference costs. Reflection AI will publish model weights -the fundamental parameters that determine an AI system's performance, for public use, while the datasets and all training processes will remain proprietary. The company aims to generate revenue from large enterprises building products based on Reflection AI models, and from governments developing "sovereign AI systems".
4
Aleph Alpha
Country: Germany | Funding: $642.8M
Aleph Alpha provides enterprise and public sector AI solutions based on own stack Pharia that supports a wide variety of open-source LLMS and includes PhariaAssistant (that enables UI chat, search, translation), PhariaStudio (development environment that allowss AI engineers to build, debug, and evaluate AI applications in collaboration with domain experts), PhariaOS (operating system that dynamically scales AI workloads across on-premise and cloud instances), PhariaCatch (that allows to create high-quality datasets to support AI system development while minimizing annotator bias). The company also aims to revolutionize the accessibility and usability of Artificial General Intelligence (AGI) in Europe. It intends to solve the the black-box nature of GenAI and develops methods for inspecting, understanding and validating its responses.
5
Parascript
Country: USA
Parascript is a leading developer of AI solutions for document capture and recognition. The company's intelligent document recognition (IDR) solutions recognize both handwritten and printed text. The system is used to detect check fraud, verify signature authenticity, extract data from structured, semi-structured and unstructured documents (e.g., loan applications, mortgage documents, ballots, petitions) in banks, financial institutions, and government agencies. Acquired by Speak Seeds
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Siddhant Patel
Editor: Siddhant Patel
Siddhant Patel is a senior editor for AI-Startups. He is based out of India and has previously worked at publications including Huffington Post and The Next Web. Siddhant has a special interest in artificial intelligence and has spent a decade covering the rapidly-evolving business and technology of the industry. Siddhant graduated from the Indian Institute of Science (Bengaluru). When he’s not writing, Siddhant is also a developer and has a deep historical knowledge of the computer industry for the past 50 years. You can contact Siddhant at sidpatel(at)ai-startups(dot)pro