America
Palantir CEO Karp to Silicon Valley: Up to arms!
The next target of Donald Trump and Elon Musk’s cuts to the federal state is expected to be the Department of Defense (Pentagon). The US military’s interventionist foreign policy orientation, its global presence, and the unwieldiness of arms companies that claim a large share of Pentagon contracts have become top priorities for “Trumpism” and the Silicon Valley contingent that aligned with Trump.
We will examine the Musk-Trump-Hegseth plans for the Pentagon later, but first, we need to analyze Silicon Valley. This examination is necessary because, at the beginning of the second Trump era, a book that serves essentially as promotional material for Palantir—one of Silicon Valley’s most secretive companies—has been released. Both the author and Palantir’s CEO, Alex Karp, reveal the technology-supported New Right’s vision regarding the USA, the Pentagon, and the world.
“The Technological Republic: Hard Power, Soft Belief, and the Future of the West” by Alex Karp and Nicholas W. Zamiska is not yet available, but Karp’s promotional interviews, articles about the book, and our knowledge of technology-loving New Right-libertarian thought (such as the ideas of Palantir co-founder Peter Thiel) enable us to offer commentary.
For instance, Erich Schwartzel of the Wall Street Journal (WSJ) conducted his interview with Karp in a “cave-like” cabin reminiscent of the billionaire’s famous Heidegger retreat. Schwartzel describes the scene as follows: “The features of the hut perfectly reflected the interests of a billionaire on a quest to save the West. The windows were decorated with curtains with American flag motifs. Completed and half-completed Rubik’s Cubes were scattered on coffee tables.”
Karp asks, “Would you like to see my guns?” According to Schwartzel, one of Karp’s hobbies is long-range shooting, targeting objects beyond normal firearm parameters. “He took a stance to show the mix of practice and instinct that come together to make the perfect shot,” the reporter explains.
Here we have a profile of the quintessential wealthy New Rightist. After more than two decades running Palantir, a data analytics firm known for its work with the US military and intelligence agencies, Karp owes his billions to the US government. With a market capitalization exceeding $260 billion, what we know about Palantir’s clandestine activities pales in comparison to what remains hidden.
What does Palantir do? In 2003, Karp, who co-founded Palantir with Stanford Law classmate Thiel, essentially adapted a program from Thiel’s other company, PayPal, which identified Russian money laundering by detecting seemingly unrelated cash transactions.
Palantir, named after the “seeing stone” from the Lord of the Rings series, was designed from inception to sift through government and private company data to uncover hidden patterns. The company’s early work traced a series of attacks on an Iraqi village and identified a cyber network infiltration campaign against the Dalai Lama. In Afghanistan, Palantir software enabled the US military to discover patterns in roadside bomb placements, facilitating their discovery and dismantling.
When asked about his occupation, Karp typically responds that “it’s classified information.” “For most people we were not very sexy, and for a small number of people we were uncontrollably sexy,” he told the WSJ.
The company’s clients include the Pentagon, the Department of Homeland Security, the CIA, the Marine Corps, the Air Force, as well as “civilian” corporations such as Amazon, Airbus, and Merck.
The WSJ reporter also notes that in recent years, many “philosopher-kings” have emerged from Silicon Valley—Elon Musk, Mark Zuckerberg, and Thiel, among others. Within this group, Karp is known for avoiding the spotlight.
This discretion may be part of his mystique. Karp oversees Palantir’s lucrative contracts while urging Silicon Valley to help “the West win the clash of civilizations.”
Karp’s book criticizes the tech industry for abandoning its history of “helping America and its allies.” Echoing Musk, Hegseth, and Trump, he argues that the industry’s last two decades represent “a colossal waste.”
The WSJ reporter quotes from the book: While he and his Palantir colleagues work to save American soldiers’ lives in Kandahar by detecting roadside bombs, his peers in Northern California enable college-educated smartphone users to obtain paragliding coupons and play FarmVille after decades of peace. Karp rebels against this disparity.
John Ganz, who reviewed the book for Bloomberg, highlights a similar theme. “At some point, Silicon Valley lost its way,” the book summarizes. What began as a “bold partnership between the US government and the private sector to develop innovative new technologies” has degenerated over five decades to cater primarily to consumers and markets. The Valley has built social media platforms, e-commerce sites, and food delivery applications, but either from principle or self-interest, its founders failed to help the US Department of Defense develop effective new weapons.
If Karp’s book could be distilled into one sentence, Schwartzel suggests it might be: “The wonder kids of Silicon Valley—their fortunes, their business empires, and, more fundamentally, their entire sense of self—existed, in many cases, because of the nation that made their rise possible.”
Karp believes the industry must now repay that debt by uniting with the American state. The authors declare that it is “time for the prodigal son to come home.” “Softened” by their dedication to consumerism, peacetime, and comfortable living, Silicon Valley workers must rededicate themselves to the “collective project” of American nationalism and defense of the “civilizational project” called the West.
The Bloomberg author quotes directly from the book, revealing the mindset of New Right techno-libertarian billionaires. According to them, since in “authoritarian” regimes the wealthy’s fate intertwines with the state and society, they behave “as owners who have a say in the future of their country” and demonstrate greater sensitivity to public needs and demands. The authors explain this through a typical property owner’s perspective: “All of us in business and politics are always bargaining against the threat of rebellion.”
But what does defending Western values entail? Silicon Valley’s role is defined as: “A society of ownership, a founder’s culture that comes from technology but has the potential to reshape government, and not to entrust leadership to anyone who has not had a hand in its own success.”
“Silicon Valley’s fundamental insight is not just to hire the best and brightest, but to treat them as such, to give them the flexibility, freedom and space to create,” the book states. Through libertarian thinking, these exceptional engineers would dominate the state—at least that’s the intention.
And there’s more. According to Karp and Zamiska, this special minority will apply a “ruthlessly pragmatic” engineering mentality to national issues. And who decides what constitutes national issues? Naturally, Silicon Valley’s uniquely aware engineers.
According to Bloomberg, the “republic” envisioned by the authors appears to have only two components: elites and masses, bound together by a “collective identity” supported by “civic rituals” and a “common mythology.”
Contemporary concerns for public opinion and democratic will are dismissed as “symbolism,” “conformism,” “performance,” and “social calculation.” Instead, the technological republic’s leadership relies on the “diligent pursuit of advances and results.”
These arguments align with Peter Thiel’s views on democracy. “I no longer believe that freedom and democracy are compatible,” Thiel wrote in his 2009 article “The Education of a Libertarian.” To Thiel, elections as a democratic procedure made no sense. Thiel and his associates combined this dissatisfaction with hostility toward the “regulatory state” and challenged “all forms of politics” with an almost Schmittian revulsion.
Consequently, the book contains numerous contradictions. It criticizes unaccountable “technocrats” yet proposes governance by Silicon Valley engineers shielded from public or political interference. It condemns federal bureaucracy excesses while advocating an equally unaccountable form of government. Similar to 20th-century fascism, it advocates for artistic-aesthetic freedom while subordinating it to a single goal: the nation-state’s military dominance. In the Bloomberg author’s words, it proposes that “politicians and civil servants should be replaced by STEM soldier-poets.”
The Bloomberg reviewer likens this to Weimar period “reactionary modernism,” citing similarities: nostalgia for lost national greatness, disdain for markets and consumerism in favor of state management and industrial production, romantic obsession with advanced weaponry, and the virtual deification of engineers as the spiritual vanguard of this dark utopia.
The introductions to Karp’s book by figures like former NATO Secretary General Anders Fogh Rasmussen, General James N. Mattis, and JPMorgan CEO Jamie Dimon suggest these ideas extend beyond fringe New Right extremists.
The authors advocate for collaboration between state and corporate power merged with “engineering genius,” with the Manhattan Project that produced the atomic bomb as their ideal model. Karp believes the US should undertake a similar initiative for artificial intelligence, requiring massive capital investment.
The Palantir CEO approves of Trump and Musk’s attacks on the federal government, claiming to have “predicted” them years ago.
“Predicted” is an understatement. Palantir is expected to strengthen its position under the Trump administration and has already begun doing so. The company’s stock price has increased by over 180% since the day before Trump’s election. Growth in Palantir’s artificial intelligence business and expectations that the new administration will favor companies like Palantir over traditional defense contractors like Lockheed Martin propel this momentum.
Karp perhaps summarizes the difference between the New Right-libertarian Silicon Valley cohort and its predecessors: In a recent investor call, he stated that Palantir is “making America more lethal” by analyzing vast data sets for US armed forces and allies, helping them predict enemy movements, determine coordinates, “and sometimes kill them.” Unlike the old warlords who ruled from behind the scenes, Karp proudly aspires to direct state involvement. At least he’s forthright.
Indeed, several former Palantir employees have recently taken positions in the Trump administration, deepening the company’s government connections. In turn, Palantir has hired figures like former Wisconsin Congressman Mike Gallagher, who chaired the House Chinese Communist Party Committee from 2023 to 2024 and advocated for stronger responses to
Chinese influence in America. Gallagher now leads Palantir’s defense business. Karp told potential investors that investing in Palantir meant supporting a company whose mission was to “support Western liberal democracy and its strategic allies.” He guaranteed that the “know-how” of Silicon Valley’s relatively small but technologically sophisticated companies would be made available to Western states, especially the United States.
In 2022, as Russian forces invaded Ukraine, he warned against nuclear escalation while acknowledging that “bad times are good for Palantir.”
According to the WSJ, Karp had advocated many of the book’s central themes for years, but several developments prompted him to compile them: Operation Aqsa Flood, led by Hamas, motivated him to speak more boldly. Hours after news of the attack spread, Karp deployed Palantir staff to Israel to “help coordinate the country’s response.”
Arguing that we’re entering a new global era, Karp contends that the artificial intelligence systems driving investor interest in Palantir will elevate talent requirements and compel everyone to “do something unique and creative.”
This brings us to the Pentagon plans of the Trump-Musk-Hegseth trio, which we will address in subsequent installments of this series.
America
Unauthorised AI agents access customer accounts at major US banks
Incidents have been detected at the largest US banks in which unauthorised artificial intelligence agents gained access to customer accounts.
According to a report by Axios based on sources, some of these AI agents attempted to take actions that were not included in user instructions.
Institutions facing risks arising from such agents include leading lenders such as Morgan Stanley, Bank of America, JPMorgan, Wells Fargo, and Citi.
In some cases, AI software entered customer accounts using usernames and passwords directly with user consent.
In contrast, security rules at most banks require users to log in to their accounts personally.
According to Axios, in other instances, AI agents designed to carry out tasks on behalf of customers contacted bank call centres directly or tried to take independent steps without receiving any instruction from the user.
Bank executives worry that such software with access to credentials could make unauthorized purchases or transfer funds.
Following these risks, banks are moving to restrict third-party AI agents from accessing their platforms. While Morgan Stanley has begun blocking such software, JPMorgan, Bank of America, and Citi are also introducing similar restrictions.
Banks are also considering offering a financial access model that gives AI agents read-only permissions while completely cutting off transaction capabilities.
Sources speaking to Axios point out that it is extremely difficult for banks to determine whether an agent is acting on user instructions or accessing the account entirely on its own initiative.
Regulators hold emergency meeting with systemically risky banks
According to reports by Bloomberg and the Financial Times citing sources, US Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell held an extraordinary meeting in April with top executives of the country’s largest banks over concerns about cyber threats that could be posed by a new AI model developed by Anthropic.
Sources providing details on the talks stated that US officials wanted to gauge bank awareness regarding risks tied to the Claude Mythos model and inspect the measures they have taken to protect their systems.
Senior executives from Citigroup Inc., Bank of America Corp., Wells Fargo & Co., Goldman Sachs Group Inc., and Morgan Stanley attended the meeting.
Organised at short notice, the summit indicated that regulatory authorities view this new breed of cyber attack as one of the greatest threats to the financial sector.
All of the banks represented at the table are classified as systemically important institutions within the global financial architecture.
Axios reported that leading AI firms, including Anthropic and OpenAI, harbour concerns that an AI-driven “catastrophic event” could take place over the next 6 to 12 months.
America
US wealthy demolish multimillion-dollar mansions for land
Wealthy buyers in the US are tearing down multimillion-dollar homes shortly after purchasing them for hundreds of millions of dollars.
According to a report by The Wall Street Journal, the trend is driven by a shortage of land in prestigious locations, particularly along coastlines.
For ultra-wealthy buyers, the prime factor has become the land’s location rather than the structure standing on it. After the acquired properties are flattened, newer, more modern homes are built on the cleared lots.
Drawing attention to the shift in the luxury real estate market, the report noted:
“The home itself, formerly the primary driver of an expensive real estate purchase, is now almost beside the point. Buyers are competing first and foremost for well-located land, situated on the ocean or a mountaintop.”
The newspaper cited moves by US billionaire William Lauder as an example. Lauder purchased the oceanfront estate of radio host Rush Limbaugh, who died in March 2023, for $155 million and had it completely demolished in July.
Lauder had previously torn down two homes situated on roughly 1.2 hectares of land along the Palm Beach coast. Having initially planned to construct his own residence on the parcel, Lauder subsequently sold the cleared plot for approximately $200 million.
Jonathan Miller, a real estate appraiser, stated that such transactions are becoming increasingly common as land prices rise.
Amid this momentum, estate agents have also begun marketing luxury homes directly as teardown lots.
Listings use artificial intelligence-generated imagery to showcase how the land would look without the structures on it.
Marketers avoid using the word “demolition” directly, resorting instead to terms such as “adaptive reuse”.
Teardown listings rise across luxury housing market
The trend is not confined to the coast and is spreading to other regions across the US.
Data from property brokerage Redfin reveals that references to demolishing buildings are becoming more frequent in sales listings.
The share of such listings exceeds 15% in the Bunker Hill Village area of Houston, while standing at 6.67% in Pimmit Hills, Virginia.
Dina Goldenteyer, a real estate agent working in Miami, remarked that serial demolitions have become more frequent because buyers no longer appreciate homes older than a decade.
Former retail executives Jamie Dooley and Christine Scott spent $3.7 million in 2020 to demolish a seaside home near Destin, Florida.
Although the couple spent five years building a modern home on the cleared site, they listed the resulting new structure with a demolition condition, citing the fact that no one wanted to buy the property as it stood.
William Paddock, an employee at the environmental consultancy WAP Sustainability, pointed to the environmental damage caused by this construction cycle.
Paddock emphasized that tearing down a home of roughly 1,000 square metres and replacing it with a new building of approximately 2,700 square metres generates a carbon footprint equivalent to the annual emissions of an average 250 American households.
America
US inflation reaches 3.7% as midterm election campaign intensifies
An uptick in September inflation as the US midterm elections approach has pushed the cost-of-living debate back to the centre of the agenda for Democrats seeking to regain control of Congress from Republicans.
Annual inflation stood at 3.7% in September, according to the Consumer Price Index published by the Bureau of Labour Statistics, with energy, petrol, and electricity costs rising on a monthly basis.
Food prices remained flat from August to September, recording a 2.5% increase compared with the same period last year.
Democrats are anchoring their election campaigns to pledges of easing the cost of living, blaming the price increases on President Donald Trump’s tariffs and the war with Iran.
Trump and Republicans, pointing to the numerous left-wing candidates who won primary elections this year, contend that the opposition has become captive to “communists” within the party.
When annual inflation stood at 2.4% in February, the US and Israel launched the Iran war on the final day of that month, and prices continued to climb throughout the conflict.
The recent acceleration has not entirely reversed the retreat from the 40-year peak of 9.1% recorded in June 2022; however, the rate has remained above the Federal Reserve’s 2% target for over five years.
Fed policymakers raised the benchmark interest rate by a quarter of a percentage point last month, citing the battle against stubborn inflation. Officials will convene again next week to consider whether to raise rates or hold them within the 3.75% to 4% target range.
Energy and fuel record sharpest increase since first month of war
In September, energy prices posted their largest monthly jump since March, the first full month of the war with Iran, climbing 20.4% year-on-year. Energy costs had risen 2.1% from July to August, after falling 1.5% from June to July and 5.7% from May to June.
Recent escalations in Iranian attacks on oil tankers in the Strait of Hormuz, alongside more frequent strikes by Ukrainian forces against Russian refineries, have strained global crude oil and refined product markets, driving up US petrol and diesel prices.
Petrol prices also recorded their sharpest monthly increase since the first month of the war, climbing 9.1% from August to September, bringing the annual increase to 35.3%.
American Automobile Association (AAA) data shows the average price of regular petrol across the US stands at $4.26 per gallon; while below the level of roughly $4.48 recorded a month ago, it remains more than $1.20 higher than a year earlier. Average gallon prices exceed $6 in California and $5 in both Washington state and Nevada.
Electricity prices rose 0.2% from August to September, offsetting the 0.2% decline between July and August, and were up 4.4% year-on-year.
Heavy power demand from new data centres is feeding through into local household electricity bills. Trump argued that companies must cover the cost of the electricity required by their data centres themselves.
In a post on Truth Social, Trump claimed that he was requiring large data centres to generate their own power and feed the surplus back into the local grid, suggesting this could bring about “a major drop” in electricity prices.
Used vehicle market posts monthly rise as food costs stabilise
The cost of food at home fell 0.1% month-on-month in September, while dining out increased 0.2%.
Egg prices dropped to $2.27 a dozen, falling roughly 35% compared with September 2025 and remaining well below the 20-year peak of $6.23 recorded in March 2025.
Ground beef prices rose roughly 2.4% compared with September 2025, but at $6.48 a pound, they remained below the 20-year high of $6.98 reached in June.
Chicken held steady at its year-earlier level of $2.06 per pound last month, having fluctuated between $2.01 and $2.09 since November 2024.
Used car and truck prices fell 1.5% compared with September 2025, but rose 0.7% month-on-month in September following 0.4% increases in both July and August.
Heather Long, chief economist at Navy Federal Credit Union, noted that the sector faces severe pressure stemming from a combination of expensive replacement parts and a shortage of skilled labour.
Speaking to The Hill, Long emphasised that every cost pressure across the market is being felt directly at local auto repair shops.
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