YC Founder Fixes $2.7T Gov Waste with AI

YC Founder Fixes $2.7T Gov Waste with AI

March 3, 2026 · 46 min · Season 2 · Episode 85

About this episode

August Chen discusses the challenges and opportunities in government procurement and how AI can transform the process.

The US government spends $2.7 trillion a year on everything from water bottles to fighter jets, yet the entire process is held together by Microsoft Word and tribal knowledge. In this episode, we sit down with August Chen, founder of Hazel (YC W24), to discuss why he left Palantir to tackle the antiquated world of government procurement. We dive into the "missionary vs. mercenary" mindset, the reality of the 1% acceptance rate at YC, and why the "death of the paper-pusher" is the greatest opportunity in VC today. What you’ll learn: Why 50% of small businesses have abandoned government contracts. The Palantir playbook: How to "deploy yourself" into a customer's workflow. Why selling to the Government requires a "hierarchy of needs" approach. The pivot from B2B2G to direct B2G: When the mission stays, but the product moves. How AI is turning months of RFP paperwork into seconds of work. Predictions for the "DOGE" era and the future of civil servant tech stacks. 📌 Watch now and subscribe for more smart, fast, founder-first interviews. Chapters: 00:00 Million Dollar Toilet Problem 00:39 YC Roaster Ad Break 01:22 Why Gov Procurement Lags 02:50 Broken Systems Examples 04:05 Inside…

More episodes of The Lobster Talks Podcast by Lobster Capital

Explore listener stats, chart rankings, contacts and more on the The Lobster Talks Podcast by Lobster Capital podcast page.