War Is Big Business: Defense Tech Booms as Investors Weigh Returns vs Morals

Summary

Earn Your Leisure Podcast Summary

Title: War Is Big Business: Defense Tech Booms as Investors Weigh Returns vs Morals
Host: EYL Network (Rashad Bilal and Troy Millings)
Release Date: June 29, 2025

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Introduction

In this episode of Earn Your Leisure, hosts Rashad Bilal and Troy Millings delve into the burgeoning intersection of defense technology and Silicon Valley's investment landscape. They explore how modern tech companies are increasingly entangled in defense contracts, the implications for investors balancing profitability with ethical considerations, and the shifting dynamics within the traditionally conservative defense sector.

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Silicon Valley’s Foray into Defense Technology

The discussion kicks off with an analysis of prominent tech companies—Meta, OpenAI, and Palantir—that are making significant strides in defense technology. The hosts highlight the irony of Silicon Valley, once dismissive of defense as an "antiquated business," now rushing to invest in it amid global conflicts.

Peter Thiel emphasizes this shift, stating at [02:41]:
"I just think it's ironic to see the push into some of these wars given the investment that they happen to defense tech. Now meanwhile, Raytheon is not moving how it normally would or Lockheed Martin isn't moving. We are having like a change of the guard amongst defense tech. But I wonder at what cost and."

This entry by tech giants signifies a paradigm shift where innovation and capital are being diverted from traditional sectors like AI and consumer tech to areas directly influencing national security and military advancements.

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Investment Implications and Stock Performance

The hosts discuss the stock performance of companies like Palantir, which, while not a direct public company like Meta, has garnered attention for its potential to soar amidst ongoing and future conflicts. The conversation touches on how defense contracts and geopolitical tensions can significantly influence stock prices.

Troy Millings adds insight at [05:04]:
"I mean, we've seen what happens with Palantir. You know, I'll add to what you said because Raytheon traditionally is not a stock. But if you look at the history of the company over the past three years, RTX is a company that spawned from that. So if you look at RTX's chart in terms of what's happened with conflict, I mean it's out of this world."

This highlights how defense-related companies can experience exponential growth in response to global events, presenting lucrative opportunities for investors who are attuned to geopolitical climates.

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Ethical Considerations in Defense Investments

A significant portion of the discussion revolves around the moral dilemmas investors face when considering defense tech stocks. While these companies promise substantial returns, they are also intrinsically linked to the perpetuation of conflict and destruction.

Troy Millings articulates this dilemma at [05:19]:
"From an investing standpoint, especially from a retail standpoint, we always talk about morally investing. If you know these things, you know that, do you invest in something because you know there's growth, but you know that destruction can come from it. It's, it's one of these dilemmas that we, we all have to face at some point. I feel like, yeah."

Peter Thiel echoes this sentiment, expressing personal reluctance to invest in certain companies despite their profitability:
"I just said I personally would not invest in Palantir." ([06:00])

This ethical quandary underscores the broader conversation about socially responsible investing and the personal conflict investors may experience when financial gains are pitted against moral values.

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Case Studies: Meta, Palantir, and Anderil

The hosts delve into specific company narratives to illustrate the complex interplay between technology, defense, and personal affiliations.

Meta and Political Influence:
Andrew discusses the political maneuverings within Meta, mentioning Anderil's alleged firing due to his support for Donald Trump—a stance that was once controversial in Silicon Valley. This story is juxtaposed with Mark Zuckerberg's current financial support for Trump, highlighting a shift in the company's political affiliations.

At [06:24], Andrew remarks:
"And the great thing about that is that allegedly what he says is that he got fired from Meta because he was supporting Donald Trump. That's interesting because he's obviously a pro Trump supporter. He was very, he was very vocal about his support for Trump years ago. And at that time, I guess it wasn't fashionable to support Donald Trump. So in Silicon Valley. So he was fired. That's what he says. Meta said that he was fired for other reasons. But now Mark Zuckerberg is one of the biggest supporters of Donald Trump, allegedly."

Defense Tech CEOs as Celebrities:
The transformation of defense tech CEOs into public figures is another focal point. Previously operating discreetly, these leaders are now celebrated akin to tech moguls, further blurring the lines between military interests and mainstream business.

Peter Thiel comments at [07:02]:
"You gotta kiss the ring and I get the contracts. That's the part of the game that we're in. Halfway through the decade, you gotta kiss the ring. So isn't doing it and they're paying the cost." ([07:16])

This metaphor illustrates the transactional nature of securing defense contracts, where personal relationships and political endorsements play crucial roles.

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Concluding Insights

As the episode wraps up, the hosts reflect on the future trajectory of defense technology investments and the broader societal implications. The increasing popularity and visibility of defense tech signify a transformative period where warfare and capitalism intersect more openly than ever before.

Peter Thiel muses:
"We are having like a change of the guard amongst defense tech. But I wonder at what cost and." ([02:41])

This rhetorical question leaves listeners contemplating the ethical and moral costs of such investments, urging a deeper consideration of the responsibilities that come with financial power in times of conflict.

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Key Takeaways

• Shift in Investment Trends: Silicon Valley's move into defense tech marks a significant shift from traditional tech sectors, driven by global conflicts and the promise of high returns.
• Stock Performance Tied to Geopolitics: Companies like Palantir and RTX demonstrate how defense contracts and geopolitical tensions can drastically influence stock performance.
• Ethical Investing Dilemmas: Investors face challenging choices between lucrative returns and the moral implications of funding defense technologies.
• Changing Corporate Narratives: The transformation of defense tech CEOs into public figures and the intertwining of political affiliations within companies like Meta highlight evolving corporate dynamics.
• Future Implications: The episode underscores the need for investors and society to critically assess the long-term consequences of merging advanced technology with defense.

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Notable Quotes

• Peter Thiel ([02:41]):
  "I just think it's ironic to see the push into some of these wars given the investment that they happen to defense tech... I wonder at what cost and."

• Troy Millings ([05:19]):
  "Do you invest in something because you know there's growth, but you know that destruction can come from it. It's one of these dilemmas that we all have to face at some point."

• Andrew ([06:24]):
  "Allegedly, he got fired from Meta because he was supporting Donald Trump... But now Mark Zuckerberg is one of the biggest supporters of Donald Trump, allegedly."

• Peter Thiel ([07:16]):
  "You gotta kiss the ring and I get the contracts... So isn't doing it and they're paying the cost."

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This episode of Earn Your Leisure provides a comprehensive exploration of the intricate relationship between defense technology and investment, offering listeners valuable insights into the ethical and financial intricacies of modern warfare economics. Whether you're an investor, a tech enthusiast, or someone interested in the socio-political impacts of business decisions, this episode sheds light on the compelling forces shaping today's financial and defense landscapes.

Transcript

[Rashad Bilal]

Earners. What's up?

[Troy Millings]

Look.

[Rashad Bilal]

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[Andrew]

Okay, so Meta, you said. Meta, you said OpenAI Palantir and there's one more company, right? Is it. Or just those three?

[Peter Thiel]

It's one more. Let me find the last one.

[Andrew]

Let me see.

[Peter Thiel]

I can't find the last one, but let's focus on those three right now.

[Andrew]

All right, so, so Meta, Palantir and OpenAI companies that we've talked about a lot. So if you want to tie it in from an investing standpoint, OpenAI obviously isn't a public traded company yet. But if you, yet if you look at Palantir, I mean people have already said that Palantir stock is going to skyrocket based off of, you know, not just this war, but a series of potential wars that could potentially happen in the future. Meta Somebody you know, Mark Zuckerberg, obviously he's, he's been, he's been so dedicated to the presidency that he actually I was considering buying a home in D.C. to moving to move to D.C. to be closer to, to Trump and his administration. And then you look at that, their stock and it's up and it's, and it's. And it has gone up. Right. So yeah. Is it a coincidence?

[Peter Thiel]

No. And I don't think most of Silicon Valley rushing into defense tech when that was looked at as the antiquated business perception wise in Silicon Valley. I just think it's ironic to see the push into some of these wars given the investment that they happen to defense tech. Now meanwhile, Raytheon is not moving how it normally would or Lockheed Martin isn't moving. We are having like a change of the guard amongst defense tech. But I wonder at what cost and.

[Andrew]

And even, you know, Andrew, you talked about them before 60 Minutes does a expose on the CEO and it's like you said, they're pushing defense tech like it's electric cars.

[Peter Thiel]

Yes. They got a sector.

[Andrew]

They got these. The CEOs have become celebrities.

[Peter Thiel]

Yeah.

[Andrew]

Whether you're talking about Anderil, whether you're talking About Palantir, the CEOs of Defense Tech companies have become celebrities. And before this was a, this defense period was a underworld like arms dealers. They made movies about arms dealers like Nicholas Cage and stuff like that. Like they would. That you didn't even want to know you. Those people didn't even want you to know who they were and you didn't know who they were. Now it's like the front of the town like. And it's like they acting like this is like the new toys that people are playing with as far as drones that can destroy a whole entire city. That says a lot about the times that we're in as far as investment opportunities. But it also says a lot about the times that we're in as far as how war has become so mainstream that it has no problem being traded publicly and celebrated publicly as well.

[Troy Millings]

I mean, tech has always been the thing. When people talk about growth and value, they find that intact. And so if AI was a story and people have led the head headlines with that, well, what's the next sector inside of a. And it, it. I mean, we've seen what happens with Palantir. You know, I'll, I'll add to what you said because Raytheon traditionally is not a stock. But if you look at the history of the company over the past three years, RTX is a company that spawned from that. So if you look at RTX's chart in terms of what's happened with conflict, I mean it's out of this world.

[Rashad Bilal]

Right.

[Troy Millings]

And so you have to throw that inside there when you talk about. I know Andrew was one of the companies you talked about obviously not publicly traded yet, but it looks all signs appointment and that's where it's headed. And we've seen some of the successful IPOs that have happened this year. That market is starting to open up.

[Peter Thiel]

Yeah. Starting to heat up.

[Troy Millings]

You starting to heat up again. You see, what was Zuckerberg, you know where this is headed. I, I thought with vancet on, on, on, on Wednesday about Palantir was just like super powerful. Like, this is the most dangerous company in the world. And so now from an investing standpoint, especially from a retail standpoint, we always talk about morally investing. If you know these things, you know that, do you invest in something because you know there's growth, but you know that destruction can come from it. It's, it's one of these dilemmas that you, we all have to face at some point. I feel like, yeah.

[Peter Thiel]

And even some people have been like, well, why do you like Anderil but not Palantir? I just said I personally would not invest in Palantir. Like, I.

[Troy Millings]

As.

[Peter Thiel]

As far as the Silicon Valley space, I think Peter Teal, that book zero to one, changed my life. I just personally would not invest into it. But I like Anderil because of the war that he went through with Meta. It's the classic revenge story. For those of you who don't know, the Oculus design, which Apple then copied came from Palmer and they tried to bury him.

[Andrew]

And the great thing about that is that allegedly what he says is that he got fired from Meta because he was supporting Donald Trump. That's interesting because he's obviously a pro Trump supporter. He was very, he was very vocal about his support for Trump years ago. And at that time, I guess it wasn't fashionable to support Donald Trump. So in Silicon Valley. So he was fired. That's what he says. Meta said that he was fired for other reasons. But now Mark Zuckerberg is one of the biggest supporters of Donald Trump, allegedly.

[Peter Thiel]

Financially, but not morally. I won't speak for Zuck, though, but.

[Andrew]

I mean, as far as forward facing, right, he's. He donated a million dollars to his. To.

[Peter Thiel]

You gotta kiss the ring and I get the contracts. That's the part of the game that we're in. Halfway through the decade, you gotta kiss the ring. So isn't doing it and they're paying the cost.

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