By Ken Chan | Host of Accelerate Perspectives
Hard Power, Soft Belief, and the Future of the West
Technological Republic by Alexander C. Karp and Nicholas W. Zamiska explores the intersection of technology, national security, and governance in the AI age. The book is a critique of Silicon Valley’s focus on consumer technology at the expense of national resilience, arguing that America’s technological leadership must be reinforced through closer collaboration between the state and private sector.
The authors, Alexander C. Karp, CEO of Palantir, and Nicholas W. Zamiska, a geopolitical strategist, bring a unique perspective to this discussion, advocating for a stronger partnership between technology firms and government. While their position reflects an inherent bias—given Karp's role in a company that directly collaborates with national security agencies—their analysis of AI development and strategic investment remains valuable.
A core theme in the book is the role of capital allocation in shaping technological futures. While Silicon Valley prioritizes rapid monetization, long-term infrastructure—such as AI-driven national defense, secure supply chains, and cyber-resilience—requires strategic investment from public institutions. The book makes the case that a stronger national wealth strategy, similar to Norway’s sovereign wealth fund or Singapore’s GIC, could ensure that technological advancement serves broader national goals rather than short-term corporate profit.
Grounding the Need of AI Development as a Co-Investment
They draw a compelling parallel between AI development and the Manhattan Project, framing the current technological moment as one requiring urgent national strategy. They contend that while private tech firms have built global infrastructure, they remain dependent on state-funded innovation, from semiconductors to defense systems. This reliance, they argue, necessitates a more deliberate alignment between technological progress and national interests. Their argument is particularly compelling when discussing investments that, while beneficial to society, lack a sufficient return threshold for individual investors—highlighting the need for sovereign wealth strategies to fill these gaps.
To illustrate this, the book examines historical examples of state-led technological transformation. The semiconductor industry, the internet, and defense technologies all emerged from public-private collaborations where government funding provided the long-term capital that private markets often neglect. Karp and Zamiska argue that if America fails to invest strategically in AI and emerging technologies, adversarial nations will outmaneuver it, undermining both economic competitiveness and security.
Proponent of a US Soverign Wealth Fund
The discussion of a sovereign wealth fund started with a hypothetical: should the U.S. had established a sovereign wealth fund in 2008, using a portion of bailout funds to take equity stakes in rescued companies, the authors content that the country could now possess a massive national investment pool. This wealth, they argue, could have been deployed to build AI infrastructure, support long-term scientific research, and secure critical supply chains. Instead, financial interventions were largely designed to stabilize markets without capturing long-term public benefits.
This brings the discussion to sovereign wealth funds. The book presents three potential models for aligning national wealth with strategic priorities:
- A Pure Wealth Maximization Fund – Focused solely on financial return, similar to traditional investment funds.
- A Strategic National Interest Fund – Prioritizing key industries, infrastructure, and supply chains to enhance economic resilience.
- A Citizen Dividend Model – Similar to Alaska’s Permanent Fund, distributing investment returns directly to citizens.
The book argues that elements of all three models must be integrated to balance financial growth, national strategic goals, and broad-based economic benefits. The authors advocate for a reinvention of public finance that not only protects national interests but also ensures that technological advancement is equitably distributed.
AI Financialization and Its Impacts on the Future of Sovereign Wealth Fund
One of the most provocative sections of Technological Republic discusses the dangers of AI-driven financialization. The authors warn that as AI increasingly shapes investment decisions, the underlying values encoded in these systems will determine capital flows across critical sectors. They highlight the risk of capital markets prioritizing short-term efficiency at the expense of national security and ethical considerations. This is particularly relevant in the context of sovereign wealth fund design—if the U.S. were to establish such a fund, the governance and objectives of AI-driven capital allocation would be crucial in ensuring long-term national resilience rather than merely maximizing financial returns.
The book warns that AI is not just a tool but a force that will define global power structures. The question is whether democratic nations will shape this trajectory through intentional governance or allow it to be dictated by market forces alone. In an era where geopolitical tensions and technological competition are intensifying, Technological Republic makes a powerful case that aligning public wealth and national strategy is essential to maintaining economic and political stability.
Ultimately, Technological Republic challenges readers to rethink how technology and capital should be governed. The book’s central thesis is that intergenerational stewardship—ensuring that today’s technological breakthroughs serve future generations—must become a guiding principle in policymaking. This means moving beyond short-term electoral cycles and quarterly earnings reports to establish institutions designed for long-term resilience.
This book is a must-read for policymakers, investors, and technologists who recognize that the future of AI is not just a matter of innovation but of power, governance, and the strategic deployment of capital. Whether one agrees with its policy prescriptions or not, Technological Republic is an urgent call to rethink the state's role in shaping technological progress and national resilience.
