Alex Karp: can Batman save America?
The governing elite in the US needs to grow a spine and face up to its responsibility to take on the bad guys, says Alex Karp, who sees himself as just the caped crusader to lead the battle
Earlier this year, the co-founder of America’s most controversial intelligence-tech company, Palantir, published a book, The Technological Republic – a distillation of a lifetime’s philosophical musing and a call to arms. The “treatise”, written by Alex Karp – often billed in the company’s mythology as the liberal yin to co-founder Peter Thiel’s hard-right libertarian yang – urges Silicon Valley to abandon its frivolous pursuit of “trivial consumer products” and recommit capital and talent to a “national project” – nothing less than a battle for Western civilisation in the teeth of Chinese aggression. America needs “a new Manhattan Project… to retain exclusive control over the most sophisticated forms of AI for the battlefield” and head off this existential threat, he writes.
Karp, one of a “gang of five” who founded Palantir in 2003, “brims with American chauvinism”, says The New York Times. Safe to say, he does not believe in appeasement, observing that the whole point is to “scare the crap out of your adversaries”. Palantir’s contribution to this process is “the finding of hidden things” – its ability to sift through mountains of data to perceive “patterns of suspicious or aberrant behaviour”, to join the dots. In the wake of 9/11, the CIA bet on Palantir auguring where the next terrorist attacks would come from and was an early financial backer. The company is often credited with helping locate Osama bin Laden in 2011 so that Navy SEALS could kill him, but it’s unclear if this is true.
From the outset, Palantir – named after a powerful “seeing stone” in The Lord of the Rings – was designed to give government, and increasingly, private companies, “a bit of Tolkienian magic”, says The Wall Street Journal. Critics have a darker view of its role as a shadowy US government aide, and in the years up to its flotation on the stock market in 2020, “the opacity of Palantir’s financials only added to its reputation as a black box”.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Alex Karp's cult status
In recent years, Karp, who spent years under the radar himself, has emerged as an online celebrity. His “meme-able look” and “unvarnished remarks” have made him into a cult figure among retail investors who count themselves as “Palantirians”. Indeed, “he sees himself as Batman”, notes The New York Times. The company’s Manhattan office, featuring a statue and prints of the superhero, is called Gotham – ditto, Palantir’s core government product.
Born in New York in 1967, to a Jewish paediatrician and a black artist, Karp went on to study at Haverford College, a liberal arts establishment in Pennsylvania, then Stanford Law School, before heading to Germany for graduate school. In 2003, he teamed up with Thiel – a former Stanford Law classmate – to launch Palantir, using a program that Thiel’s former company, PayPal, had deployed to identify Russian money laundering. Of late, the company has been on a roll. In 2020, Karp was paid $1.1 billion in total compensation, “the highest of any chief executive at a publicly traded company”. But the advent of Trump has put rockets under the stock – up by 110% in the year to date.
Karp’s general strategy is to position himself as a guy that can “talk sense” to the left, says The Nation. Palantir’s “carefully maintained mystique provides the perfect backdrop” for him “to play the eccentric intellectual” – mixing references to “philosophy, art and science” with “incendiary statements”. Yet the vision conjured up in The Technological Republic is chilling. The book is “a road map for a world in which warfare provides the essential impetus for social cohesion – where citizenship means compliance, where technology means weapons… and where the republic itself is a garrison state, built to Palantir’s specification”.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Jane writes profiles for MoneyWeek and is city editor of The Week. A former British Society of Magazine Editors editor of the year, she cut her teeth in journalism editing The Daily Telegraph’s Letters page and writing gossip for the London Evening Standard – while contributing to a kaleidoscopic range of business magazines including Personnel Today, Edge, Microscope, Computing, PC Business World, and Business & Finance.
She has edited corporate publications for accountants BDO, business psychologists YSC Consulting, and the law firm Stephenson Harwood – also enjoying a stint as a researcher for the due diligence department of a global risk advisory firm.
Her sole book to date, Stay or Go? (2016), rehearsed the arguments on both sides of the EU referendum.
She lives in north London, has a degree in modern history from Trinity College, Oxford, and is currently learning to play the drums.
-
Undervalued Asian stocks that can be the “winners of tomorrow”Opinion Nitin Bajaj, portfolio manager of Fidelity Asian Values Trust, highlights three investment opportunities across Asia
-
How dinosaur fossils became collectables for the mega-richDinosaur fossils are prized like blue-chip artworks and are even accelerating past the prices of many Old Masters paintings, says Chris Carter
-
How dinosaur fossils became collectables for the mega-richDinosaur fossils are prized like blue-chip artworks and are even accelerating past the prices of many Old Masters paintings, says Chris Carter
-
The battle of the bond markets and public financesAn obsessive focus on short-term fiscal prudence is likely to create even greater risks in a few years, says Cris Sholto Heaton
-
'Rachel Reeves’s tax rise will crash the economy'Opinion Rachel Reeves will be the first chancellor since Denis Healey in the 1970s to raise income tax. It will only push Britain into recession, says Matthew Lynn
-
Cringe Britannia: the decline of the UK's soft powerBritain has long wielded soft power through its commitment to sound political values and the export of high and popular culture. That is now under threat
-
Rishi Sunak: We need a cultural change to make people invest, not a policy changePodcast On the MoneyWeek Talks podcast, Rishi Sunak tells Kalpana Fitzpatrick that we need better numeracy skills to improve financial literacy and boost the economy.
-
STS Global Income & Growth: Buying quality at a discountInvestors should consider STS Global Income & Growth to diversify away from mega-cap tech
-
'We still live in Alan Greenspan’s shadow'When MoneyWeek launched 25 years ago, Alan Greenspan was chairman of the Federal Reserve. We’re still living with the consequences of the whirlwind he sowed
-
Venture capital trusts that offer growth, income and tax reliefOpinion Alex Davies, founder of high-net-worth investment service Wealth Club, picks three venture capital trusts where he'd put his money