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They use them like private IPs, across several air gapped networks. When I was enlisted we were putting them on desktops.

The DoD is also larger than any company.

By employees it’s the largest, though if Walmart bought McDonalds they’d have more employees (and perhaps as many chemical weapons).

How does this scale to other military globally. Does anyone else have an /8 block?

Last I heard, that any project needing more than one IP got a /24

Ask them [1] and report back.

Supposedly they do use some of it for honeypotting schemes but I imagine some of it is out of paranoia

Most of it is probably just because they invented IPv4, and were therefore able to keep as much as they wanted.