Bloomberg Talks — Palmer Luckey Talks Tech

Date: January 7, 2026
Host(s): Caroline Hyde, Ed Ludlow (Bloomberg Technology Co-Hosts)
Guest: Palmer Luckey (Founder of Anduril and ModRetro)

Episode Overview

This episode is a timely, in-depth discussion with Palmer Luckey, founder of defense tech company Anduril and retro gaming hardware company ModRetro, recorded live from CES in Las Vegas. The conversation pivots between urgent issues in the U.S. defense tech sector—sparked by new policy proposals and presidential statements—and Palmer’s passion for modernizing retro technology in consumer electronics. Luckey addresses hot topics in defense spending, corporate governance, and the rapidly shifting landscape in tech competition with China. He also shares his ongoing love for gaming hardware and hints at future ModRetro projects.

Key Discussion Points & Insights

1. Defense Tech in the Political Spotlight

• Presidential Proposals & Policy Shifts ([00:24]–[05:44])

  • The conversation opens with recent Truth Social posts from President Trump, calling for defense companies to stop stock buybacks and dividends, and instead refocus on investing in the U.S.
  • Palmer Luckey voices support for Trump’s demand that defense firms should build factories and maintain timelines and cost effectiveness:

    "President Trump is saying that he wants to see defense companies building new plants, building new factories, delivering on time, and then maintaining systems cost effectively. And that's trying to do more. That is why I started Anduril eight years ago... we weren't moving fast enough."
    (Palmer Luckey, 00:58)

  • Luckey distinguishes between dividends (which he sees as less justifiable) and stock buybacks, and reflects on why these issues are suddenly at the forefront:

    "If these companies were doing really well... I don't think you would see any action from Trump or others on this. It's really a reflection of how many problems we have with our defense industrial drawback."
    (Palmer Luckey, 01:39)

• CEO Compensation and Restrictions ([02:13]–[05:13])

  • Discussion of President Trump’s proposed $5 million CEO pay cap for publicly traded defense firms. Palmer reveals:

    "I pay myself $100,000 a year... I also own a lot of my company... My motivation is to try and build it the biggest thing possible."
    (Palmer Luckey, 02:34)

  • He accepts the principle of taxpayer oversight:

    "When you are on the dole and... run on the public's wallet, the public should be able to impose whatever restrictions they want on you."
    (Palmer Luckey, 04:19)

  • Notable analogy for accountability:

    "It's like, your parents say you're grounded until... bring up your grades, solve your problems... Your parents are not necessarily looking to ground you for life."
    (Palmer Luckey, 05:31)

2. Anduril’s Progress and Challenges

• Execution on Commitments ([05:44]–[07:01])

  • Palmer updates on projects, highlighting Arsenal One, a huge plant in Columbus, Ohio:

    "We're building autonomous fighter jets... building about 6 million square feet... We're actually ahead of schedule on that."
    (Palmer Luckey, 06:10)

  • He notes $900 million of Anduril’s own investment into the plant.

• Setbacks and Technical Hurdles ([07:01]–[08:08])

  • Palmer is candid about difficulties, particularly with a man-portable counter-drone system:

    "We really wanted to have that actually fielded right about now... it’s turned out to be a more technically challenging problem than we thought."
    (Palmer Luckey, 07:18)

  • On risk and innovation:

    "If you only build things with no technical risk, you're not trying hard enough."
    (Palmer Luckey, 07:56)

3. Geopolitics of Drones: US vs. China

• China’s Drone Dominance ([08:08]–[09:27])

  • Palmer explains China’s lead in drone tech as a product of state policy and industrial strategy:

    "China has the best drone industry in the world. It's not even close. It's definitely a weakness that the United States has."
    (Palmer Luckey, 08:24)

  • He discusses the recent US ban on DJI drones, expressing cautious optimism for the growth of the US drone industry but highlighting systemic disadvantages:

    "The US is capable of building drones. It's just we aren't capable of competing with the labor laws, emissions laws, energy prices... that you see in China."
    (Palmer Luckey, 08:48)

  • Note on Anduril’s international partnerships:

    "Anduril actually is a drone that we were showing off in Japan recently that's made with 100% Japanese parts."
    (Palmer Luckey, 09:17)

4. Retro Tech Returns: ModRetro

• Origins and Philosophy ([09:27]–[11:46])

  • Palmer recounts his early history with ModRetro and CES:

    "Retro is actually a company I started when I was about 14 years old... combining retro technology and modern technology to build these kind of tributes that bring the best of both worlds."
    (Palmer Luckey, 09:41)

  • Highlights products:
    • ModRetro Chromatic: Game Boy cartridge-compatible with a magnesium shell and lab-grown sapphire crystal screen ("largest... of any product ever").
    • Moderator M64: Plays Nintendo 64 games—“the ultimate Nintendo 64.”
  • Fun anecdote about sneaking into CES as a teenager:

    "I'd use a fake ID to get into the show... Now I'm coming with a real ID and with a real company."
    (Palmer Luckey, 10:30)

• Future of ModRetro—Ambitions and New Products ([10:54]–[11:46])

  • Palmer acknowledges ModRetro is niche:

    "Never going to be as big as Apple... Currently, you've got a couple dozen people building things for people who really, really care about this stuff."
    (Palmer Luckey, 10:56; 11:04)

  • Teases an upcoming “TV that works”:

    "Imagine a TV that instead it just did what it was supposed to."
    (Palmer Luckey, 11:26)

    • On what customers want:

      "What would you rather have, a smart TV or a TV that shows what you plug into? I think I know what most people would want, but that's a pretty Retro idea, unfortunately."
      (Palmer Luckey, 11:39)

Memorable Quotes & Moments

• On defense company accountability:

  "If I am getting paid by taxpayers, they should have the ability to elect people... who can hold me to account in any way they wish."
  (Palmer Luckey, 04:22)

• On technical risk:

  "If you only build things with no technical risk, you're not trying hard enough."
  (Palmer Luckey, 07:56)

• On ModRetro’s appeal:

  "There's a lot of things that we're working on that are kind of learning from the lessons of the past and trying to just bring them into the future."
  (Palmer Luckey, 11:30)

Timestamps of Key Segments

• [00:24] – Palmer Luckey joins to discuss defense tech and presidential intervention
• [01:39] – Dividends vs. stock buybacks: Palmer's nuanced view
• [02:34] – Palmer on his own compensation and company motivation
• [04:19] – Public accountability for defense contractors
• [06:10] – Status update on Anduril’s Ohio plant and investments
• [07:18] – Technical challenges in counter-drone systems
• [08:24] – US disadvantage versus Chinese drone industry
• [09:41] – The founding of ModRetro and retro gaming hardware vision
• [11:26] – Palmer teases a simple, reliable television—retro with a future

Conclusion

This episode delivers a rare, candid look into both the present-day crises and longer-term aspirations in defense technology and consumer electronics. Palmer Luckey is unflinching in his views about public accountability for taxpayer-funded businesses, transparent about Anduril’s challenges, and unapologetically passionate about elevating “retro tech” for modern enthusiasts. The combination of timely policy debate and personal tech nostalgia makes this a must-listen for anyone interested in where US innovation is headed—on both the battlefield and the living room floor.