Steelman Press

America's Dangerous Passage

What if peace is the aberration?

Preface

Palmer Luckey made his first fortune selling people a dream of virtual worlds. He is spending his second fortune making sure the real one doesn't fall apart.

The founder of Oculus VR — the company that reignited virtual reality before selling to Facebook for $2 billion — now runs Anduril Industries, a defense technology firm named after a sword in The Lord of the Rings. He is 33 years old. He was homeschooled, started community college at 14, and was living in a camper trailer in his parents' driveway at 19 when Peter Thiel gave him a million dollars. He has been personally sanctioned by the governments of China, Russia, and Belarus. He designs cruise missiles that can be manufactured in Ford factories. And across dozens of podcast appearances over five years — with Joe Rogan, Rick Rubin, Bari Weiss, Mike Rowe, and many others — he has articulated a vision of America's future that is simultaneously darker and brighter than almost anyone else's.

The darkness is about what America has lost: the industrial base, the political will, the demographic weight, the shared memory of sacrifice. The brightness is about what technology could deliver: $1,000 trucks, nuclear-powered factories, robots that fight wars so humans don't have to, food so cheap it isn't worth billing for. Luckey holds both visions at once, and the tension between them generates everything he says and builds. He is a techno-optimist who chose to build weapons because he believes the path to abundance runs through a dangerous passage — and someone has to secure it first.

The Accident

Start where Luckey starts: with the peace.

He returns to one passage constantly, across years and shows and interviewers. It's C.S. Lewis writing about Tolkien, and Luckey quoted it in full on the Mike Rowe show:

Almost the central theme of the book is the contrast between the hobbits, or the Shire, and the appalling destiny to which some of them are called, the terrifying discovery that the humdrum happiness of the Shire, which they had taken for granted as something normal, is in reality a sort of local and temporary accident, that its existence depends on being protected by powers which the hobbits forget, against powers which the hobbits dare not imagine.

Palmer LuckeyMike Rowe

Then he applied it:

And I think that describes a lot of Americans and a lot of American allies. They're being protected against powers that they forget against forces they dare not imagine, and they forget that it is a local and temporary situation.

Palmer LuckeyMike Rowe

The post-WWII peace — free trade, open shipping lanes, the absence of great-power war — is not a permanent achievement of civilization. It is an anomaly sustained by American military and economic dominance. If that dominance erodes, the peace goes with it.

Luckey has explicitly rejected the "end of history" thesis — the idea that liberal democracy and economic interdependence have permanently altered human nature. He thinks people who believed in permanent peace failed to reckon with the fact that conflict over resources has existed for millions of years, and that what changed after 1945 wasn't human nature but the balance of power. The U.S. Navy ensures free trade, open shipping lanes, and protection against piracy. Not diplomacy. Not institutions. Not the arc of history bending toward justice. Ships.

And the people who built and crewed those ships are dying off. Less than a third of American families now have a military member. During WWII, nearly every family had someone who fought. That shared sacrifice created a nation that understood what it was protecting and why. As those people die, Luckey argues, the understanding dies with them. Young people can't remember 9/11. They certainly aren't remembering the lessons of the World Wars. And the distance between Americans and the reality of what protects their comfort grows wider every year.

Someone who's been, who's looked evil in the eye can't pretend, 'Well, I think it doesn't exist and really we shouldn't be killing anybody. There's nobody who deserves to die.'

Palmer LuckeyMike Rowe

Mike Rowe distilled it to five words: "You get to be an isolationist because you're isolated."

The Exhaustion

If the peace depends on America, the next question is whether America is up to it.

We burned all of that credibility that we built up during World War II. We burned most of it during Vietnam, and then we burned up the rest of it in the Middle East fighting this war on terror. And you will not convince Americans to go fight another war even if it is just.

Palmer LuckeyMike Rowe

He went further:

I would argue I don't think that America could work itself up enough to go fight the Nazis again.

Palmer LuckeyMike Rowe

He asked Rowe whether modern America could produce soldiers like those who stormed Normandy — "Do you think that we have a few million of those?" Rowe's answer: "I do not."

This isn't a moral judgment for Luckey. It's a political fact. Whether the barrier is spiritual, moral, or political, America cannot muster the will or capital for total mobilization anymore. At the International Spy Museum, he put a finer point on it: "I am not sure if there's a single place in the world that you could convince Americans to go die for by the hundreds of thousands or by the millions right now."

The causes are specific. Decades of misadventure in the Middle East that cost trillions without building an enduring democracy. Foreign aid that got skimmed and embezzled, eroding faith in the American project. An institutional trust deficit that Rowe called terminal: "Our trust has also died in the very institutions that we used to immediately defer to." The Afghanistan withdrawal, where the local government collapsed the moment American forces left — proof, to Luckey, that America has been fighting for countries that won't fight for themselves.

And even if the will returned, the capacity might not. U.S. war games show the country would exhaust almost all critical precision ammunition within a week of real conflict. China has 350 times more shipbuilding capacity. China gets roughly ten times the value per defense dollar, with engineers Luckey calls "genuinely world-class". American universities, meanwhile, now train engineers to be "architecture astronauts" who pick components and send design packages to Chinese engineers who do the actual manufacturing work.

A population that won't fight. An industrial base that can't sustain a fight. Together, these demand a different strategy entirely.

The Gun Store

I think that probably for the next 50 years, the United States is not going to be the world police. We are not gonna send hundreds of thousands or millions of troops to go save someone's ass. I think we're gonna go from being the world police to being the world gun store.

Palmer LuckeyTetragrammaton with Rick Rubin

This is Luckey's signature concept, and he repeats it everywhere — The Free Press, Hoover Institution, eMerge Americas, the International Spy Museum. The idea: America provides allies with everything they need to turn themselves into "prickly porcupines" that nobody wants to step on — artillery, ammunition, jammers, air defense, autonomous drones — while requiring them to do their own fighting.

It is not his first choice. On The Free Press, Luckey told Bari Weiss about the childhood lesson that shaped his foreign policy instincts — his mother using a playground analogy to explain that strong people have a moral obligation to protect those they care about. That was once the Republican position. Compassionate conservatism. America as the strong kid who stops the bully.

Luckey still believes it. He just doesn't think it's politically available anymore.

Even if I believed we should be the world police, I don't think that's a winning position. And so as a realist, I have to say, well, what's the next best thing? It's being the world gun store.

Palmer LuckeyThe Free Press

He worries about what this makes him within his own coalition. The American right is moving fast toward isolationism — not just opposing boots on the ground but opposing even actions like Israel targeting Iran's nuclear facilities. Luckey sees the direction and dreads the destination:

I'm gonna be a Republican here, and I'm like, 'We gotta help the people that are being killed by the dictators,' you know? And they say, 'Wow, you're such a globalist.' I'm like, 'Whoa!'

Palmer LuckeyThe Free Press

But the gun store only works if it's stocked. And right now, the shelves are nearly bare. At eMerge Americas, Luckey tried to convey the scale of the production disparity and admitted the charts don't even work — if you put American ship production on a board as a few dozen dots, China's equivalent fills the screen with thousands of single-pixel points. You can't even tell it's a chart.

The Math

How can a country of 500 million people, in the long run, out-compete, economically and militarily, a country of two or three billion people? You'd have to believe that each American is six times as productive or useful as each Chinese national. That doesn't seem likely.

Palmer LuckeyeMerge Americas

Luckey attacks this problem from four directions at once, each operating on a different time horizon.

First, autonomous systems. This is the most immediate solution and the one most directly tied to Anduril's business. Autonomous weapons decouple military capability from manpower entirely. An autonomous ship doesn't need hundreds of crew members. An autonomous jet doesn't need a pilot who continuously trains and logs flight hours. You could build 10,000 airplanes, store them in a warehouse, and not hire a single new pilot. You could build them, warehouse them for 10, 20, or 50 years, then activate and upgrade them with new sensors and weapons — the way the U.S. has kept F-15s and F-16s flying for decades through iterative improvement.

Second, industrial redesign. Luckey corrects a popular myth about WWII: America didn't convert car factories into tank factories. The military designed weapons specifically around existing manufacturing constraints — the thickness of metal that factory presses could bend, the fastening methods available in automotive plants. Post-Pearl Harbor aircraft were deliberately made heavier and less performant than pre-war models because they could be riveted and welded rapidly rather than hand-crafted. The factories stayed car factories. They just started making tanks.

Anduril is applying the same principle. On The Joe Rogan Experience:

We make this line of cruise missiles, the Barracuda. We make three different Barracuda missiles. It has 90% fewer parts than legacy cruise missiles. It can be made with 10 tools that all exist in every automotive plant. So you could make this missile at mass scale in any GM facility, in any Ford facility.

Palmer LuckeyThe Joe Rogan Experience

At West Point, he described the ideal: any weapon critical to large-scale deterrence should be demonstrably manufacturable in existing civilian factories, with work instructions simple enough that workers can be trained in one week and missiles start coming off the line. The goal is ensuring China knows America can fight on day 1, day 10, day 100, and day 1,000 of a conflict.

Third, energy. This may be the most underappreciated pillar of Luckey's framework. He treats cheap energy not as an environmental question or an economic preference but as the master variable that determines whether anything else works. On Mike Rowe:

If I can drop my energy costs down to near zero and other countries can't do it, now they're the ones that are screwed. Now they're the ones that are saying, 'Oh my God, how do I compete with American automobiles?'

Palmer LuckeyMike Rowe

He wants nuclear reactors on the premises of every factory and data center — energy generation treated like any other tool on the shop floor. Partly for efficiency: it doesn't make sense to generate power in one place and ship it across a city. Partly for resilience: the grid has become a political weapon, and politicians who control energy costs can coerce businesses into compliance. And partly because the U.S. happens to sit on enormous uranium reserves — "isn't it just incredible that as we move into the atomic age, it turns out we also have more of the stuff you need for the atomic age than anybody else?"

Fourth, people. This is where Luckey goes furthest and offers the least:

We need a billion Americans minimum, probably more like 2 or 3 billion.

Palmer LuckeyeMerge Americas

He illustrates the stakes through the Dutch analogy — the Dutch navy was once the world's most powerful, but nobody destroyed it; the rest of the world simply grew around it until it became irrelevant. Through South Korea — with a birth rate of 0.67, North Korea doesn't need to fight; within four generations there could be 16 to 20 times more North Koreans than South Koreans. Through the blunt logic of alliance: "Americans a lifetime from now are not willing to send their kids to go die for a tiny enclave of people they've never met on the other side of the world who are economically irrelevant to our economy."

His demographic prescription is exhortation — "2.1 kids minimum, that's replacement rate" — supplemented by a more actionable proposal: Cold War-style "defector visas" to brain-drain China's best engineers and scientists. His pitch for political viability is characteristically blunt: don't market it as merit-based immigration — frame it as an anti-CCP weapon. "Pure red meat. We're gonna steal their people and ruin their entire military." Everyone from elites to blue-collar workers in Chicago can get behind kicking their ass.

The Adversary

China is the adversary Luckey takes most seriously and talks about with the most nuance.

The threat assessment is severe. China has between 50 and 300 times the military shipbuilding capacity of the United States. Its commercial shipyards must meet military compliance standards by law, creating a massive dual-use industrial base. Xi Jinping has spent a decade declaring that the Chinese military should be built to fight, that reunification with Taiwan is inevitable, and that there will be a great struggle with the West. Luckey takes these statements at face value. Dictators often mean what they say — Putin spent 20 years discussing rebuilding the Soviet Union before he actually invaded Ukraine.

But Luckey draws a sharp line between the CCP and the Chinese people. On Tetragrammaton:

Chinese people, they like America, they like American culture, they like American movies, they like American music... The people who have a beef with America are the members of the Chinese Communist Party.

Palmer LuckeyTetragrammaton with Rick Rubin

Since only 25 to 30 percent of Chinese citizens are CCP members and most are apolitical, Luckey sees a future where China becomes an ally — like Japan, which went from Pearl Harbor to buying F-35s within a single lifetime. "I'm actually quite hopeful. I would love to see them become like Japan, ideally without a world war in between. That's the rub."

He also identifies a structural weakness in the Chinese system that complicates his own population math. At the Hoover Institution, he argued that China's education system tracks students into narrow specializations early, producing many capable workers but very few polymaths who can draw connections across fields. He attributed his own success to being "good enough at a lot of things" to see what specialists miss. Then the verdict: "The Chinese system doesn't produce people like that. It generates a lot of worker bees" but very few queen bees.

And America's capital markets have no Chinese equivalent. Luckey got his start because Thiel backed a teenager with no degree and no pedigree — just a prototype and a pitch. That's not happening in China, where DJI succeeded because the government anointed it the chosen drone provider and gave it free land, factories, and subsidies. The American system is messier. Money flows in bizarre ways. But it flows toward ideas with genuine potential, and that matters.

The U.S. also has friends. Partners all over the world. China hasn't convinced anyone to host the Chinese military or embrace Chinese culture. On a16z crypto, Luckey stressed that America needs to lean into the advantages it actually has — the financial apparatus, the cultural influence, the network of alliances — rather than trying to out-manufacture China at its own game.

The Deterrent

Everything Luckey builds is oriented toward one outcome: making war unthinkable. On The Logan Bartlett Show:

The whole point of the war machine is not to win wars, it's to deter wars. You want to build tools that are so powerful that potential adversaries know they will lose, preventing conflicts from starting.

Palmer LuckeyThe Logan Bartlett Show

His vision for Taiwan makes the logic concrete. In a speech at fOx Hsiao in Taipei, he described the scenario he actually wants: not Taiwan winning an invasion but Taiwan making invasion unthinkable.

Xi asks his top generals to analyze what an invasion of Taiwan would look like... A new result has emerged different from their previous war games. Taiwan wins decisively... Xi would be forced to surrender a lifetime of imperial ambitions because his plans, as best laid as they are, are upended by a technological revolution that he could not have predicted, one that's powered by a free people who believe in that technological revolution.

Palmer LuckeyfOx Hsiao

No shots fired. No ships sunk. Just math so clear that even a dictator can read it.

Luckey acknowledges the paradox built into this mission. Successful deterrence makes the deterrer look wrong. If he perfectly prevents an invasion of Taiwan, people will say the threat was overblown and his weapons were unnecessary. The military becomes "out of sight, out of mind." Recruitment drops. Support erodes. And the deterrence that prevented the war weakens — a self-destructive cycle that feeds on its own success.

He also envisions a deeper transformation: complete battlefield awareness on both sides, so that conflicts can be resolved before they begin — like two expert Go players recognizing who will win mid-game. Wars happen because adversaries are misled about their chances. Japanese leaders in WWII convinced their people that America was "barely hanging on" when the opposite was true. Information dominance could end that kind of miscalculation permanently.

The Moral Framework

Why America specifically? Why should the world's arsenal be in these hands?

America as a whole has made a lot of mistakes, but if you look around the world and you look at what the other options are, we are far and away the best choice."

"It's not been many times in the history of the world where the biggest player also happens to be pretty benevolent and not on a... We're not out there trying to take over countries and bring them into our empire. That is incredibly strange from a world history perspective.

Palmer LuckeyJoe Lonsdale: American Optimist

The case is comparative, not absolute. Luckey never argues America is good in some platonic sense. He argues it's the best available option — a nation whose stated goals include allowing democracy to flourish and expanding human rights, unlike China or Russia.

He extends the moral claim to the weapons themselves. Technological superiority provides the optionality needed for ethical warfare — forces with overwhelming advantage can afford to wait for optimal moments to strike, avoid civilians, minimize collateral damage. Weaker forces can't afford such restraint. They take whatever shot presents itself. Military dominance, in Luckey's framework, is a prerequisite for morality in war, not a threat to it.

But there's a rawer dimension. At Pepperdine University, he said something most defense executives would never say:

Societies have always needed a warrior class that is enthused and excited about enacting violence on others in pursuit of good aims. And I think that it's reasonable for the philosophers to degrade those people and whine about how they're sick in the head, but society needs them.

Palmer LuckeyPepperdine University

He counted himself among them: "Even if I'm sick in the head, we need people like me who are sick in that way and who don't lose any sleep making tools of violence." Then the corrective, from Tolkien: "You love the blade not for the brightness of the blade or the keenness of the edge, only for that which it protects." An aspiration, he said. Not always achieved. But necessary.

On governance, he is clearer than most people expect. Asked on The Joe Rogan Experience whether national security should be run by private companies, his answer was sharp:

Do you wanna live in a corporatocracy where big tech CEOs get to decide the de facto foreign policy and military policy of the United States? ... You can't vote me out. You can't elect my competitor.

Palmer LuckeyThe Joe Rogan Experience

Private companies develop the technology. The government decides what gets built, for whom, and where it goes. "That has to be the government, unless you just don't believe in democracy at all."

On autonomous weapons killing innocent people, he doesn't flinch:

War is hell, and it's not gonna be perfect. There will be people who are killed by AI who should not have been killed. That is a certainty if artificial intelligence becomes a core part of the way that we fight wars.

Palmer LuckeyBloomberg Originals

But the alternative — keeping weapons dumb, refusing to give a landmine the ability to distinguish between a school bus and a tank — strikes him as the greater moral failure. He asks whether there is any moral high ground in leaving defense work to less ethical, less competent, or less reticent people. His answer is no.

The Slow Decay

If there is one threat Luckey fears above all others, it is not China. It is not Russia. It is not even bioweapons, though he calls tailored biological weapons far more likely to cause mass death than any autonomous system.

It is comfort.

Probably the big problem would be like a slow decay into decadence and rot, because everything's fine enough that bread and circuses are enough, and that's pretty spooky.

Palmer LuckeyCore Memory

Paradoxically, he sees existential threat as the cure. The Cold War produced LEDs, microprocessors, GPS, and mobile phones. America does its best work when it feels threatened. Without an enemy at the gates, the incentive to innovate, to build, to sacrifice dissipates into Netflix and DoorDash and arguments about pronouns. The hobbits forget.

This is why Luckey is drawn to the idea that another Cold War would be beneficial — not because he wants the danger but because he wants the mobilization that danger produces. A nation rallied. Engineers building things that matter instead of wasting their talents on search engines and social media. Young founders, forced by tighter capital markets, directing their efforts toward energy, national security, and transportation instead of crypto art and delivery apps.

He carries some optimism that if genuinely threatened, America will rise. But "historically speaking," as he told Rowe, "it's very rare that something with a lot of inertia stops without a sudden impact."

The Other Side

For all the darkness in Luckey's diagnosis, the vision he holds for the far side of it is something else entirely.

I am so optimistic about our future on basically the front of every technology... For all of the people who feel like everything's going to shit, I think we're gonna be looking back in 20 years as we're eating our 10-cent Jack in the Box burritos given to us by burrito cannons and drones and we're gonna be in our $5,000 cars charged up by nuclear reactors.

Palmer LuckeyTetragrammaton with Rick Rubin

He has a theory underneath it. On a16z crypto, he laid it out: automation has already made food and clothing absurdly cheap — oats cost a dollar for many pounds, one hour of minimum wage buys a week's calories, people buy clothes and throw them away after wearing them once. The same forces will hit everything else.

I really do believe that in our lifetimes, you'll be able to go buy something that's like a Ford F-150 for $1,000 or the equivalent of $1,000... I bet you'll be able to recycle it with 90% efficiency at the end of the season. You'll say, 'What's my summer car gonna be? Let's go down to the mall and buy one.'

Palmer Luckeya16z crypto

Same for housing, once anti-manufactured housing laws — which he calls "one of the most anti-American sets of laws that there's ever been" — are removed. Same for energy, once nuclear power is unleashed. Same for medicine, once AI enables running 10,000 labs instead of one and millions of simulations instead of thousands.

His summary was four words: "The current present of oats is the future of everything."

And warfare itself, in this vision, becomes something different. Luckey would welcome a future where combat is primarily robots fighting robots. Not because he's naive about conflict — he doesn't think it will end — but because it transforms military power into a question of economic capacity rather than human lives. Machines fighting machines. Far less death than the World Wars. Humans getting on with living.

I would love to lose the humanity in warfare.

Palmer LuckeyNew York Post

The Question

Here is the tension that holds Palmer Luckey's entire worldview together: he believes the future is bright and the present is dangerous, and the bright future only arrives if we survive the dangerous present.

The $1,000 trucks are real. The 10-cent burritos are coming. AI will transform medicine and manufacturing and energy. But none of it matters if China invades Taiwan and crashes the global semiconductor supply chain. None of it matters if America's industrial base atrophies past the point of recovery. None of it matters if the hobbits forget so completely that they can't remember what protected them even as the protection dissolves.

So Luckey builds weapons. Not because the weapons are cool — though he admits the blades are bright and the edges are keen, and that's how you recruit talent. Not because he loves war — he named his company after a sword from a book written by a man who hated war. But because there is no moral high ground in leaving this work to less ethical, less competent people. Because the pacifists exist on the sacrifices of those who put their lives on the line. Because somebody has to clear the minefield, and he has the money, the credibility, and — by his own admission — the particular kind of sickness that lets him do it without losing sleep.

At the International Spy Museum, an interviewer asked what he tells himself at night:

We have been entrusted with a lot of responsibility. We have to do our absolute best. Our absolute best won't be perfect, but it needs to be damn close.

Palmer LuckeyInternational Spy Museum

His deepest fear isn't that the enemy arrives. It's that the enemy never quite arrives — that the threat stays diffuse enough and distant enough that Americans never feel compelled to respond, and the slow decay he warns about simply runs its course.

But he has one reason for hope, and it's the same one he keeps returning to: Americans respond to threat. They always have. The Cold War proved it. WWII proved it before that. The question for the next hundred years isn't whether America has the capability. It's whether the threat will crystalize soon enough to activate it — before the industrial base hollows out, before the demographics shift past recovery, before the memory of what it costs to maintain a civilization fades entirely from the people who inherited it.

Whether that's a strategy or a prayer, even Luckey can't say.