Could AI Revitalize U.S. Manufacturing?

Shyam Sankar, the chief technology officer at Palantir, seems to think so. His new book, *Mobilize*, puts forth the idea that the U.S. could stave off global conflict by reinvigorating its manufacturing sector with AI-driven solutions, which would, in theory, outperform China’s automated production facilities.

“If American workers could be made 50 times more productive than their competitors, we could really shift the equation,” Sankar mentioned, highlighting how this change could promote large-scale reindustrialization.

*Mobilize* presents a rather hopeful perspective, challenging the prevalent belief that AI will eliminate jobs (and perhaps even humanity). Instead, it suggests that AI can restore U.S. manufacturing capabilities, generating jobs and enhancing national safety.

“AI is actually creating more jobs, and no, I’m not just referring to the temporary roles in data centers,” Sankar argued, pushing back against the prevalent narratives of doom surrounding AI. “I’m referring to permanent roles on factory floors.”

Sankar admires the “mavericks” who shaped America, citing innovators like Hyman Rickover, who met initial resistance before proving their worth. He has a clear belief in the power of rule breakers, and that’s why he sees a path for America to emerge victorious.

At 44, Sankar holds a unique perspective in the tech world; he blends significant technical know-how with a strong sense of patriotism, having spent over a decade negotiating deals with the Pentagon.

The timing of his book’s release coincides with a wave of global unrest, with recent tensions in Iran and other regions sparking discussions around war. As reshoring gains bipartisan support and the CHIPS Act injects $39 billion into local manufacturing, concerns regarding AI continue to proliferate.

“I’ve felt like I’ve been voicing my concerns for ages. It’s nice to see some momentum around the subject now,” Sankar reflected. “This is a book about what’s best for our nation… After 250 years, what’s next for us?”

He believes that, given the vast resources of Asian superpowers, the AI race is positioning the U.S. to lead what could have been China’s era. This advantage, he argues, could enable America to rebound swiftly, and he’s eager for the nation to capitalize on it.

He’s already observed Palantir clients implementing this technology. For instance, a manufacturer of submarine parts drastically slashed planning time from two weeks down to just 10 minutes, prompting the addition of a third shift.

“This is AI empowering American workers,” Sankar expressed enthusiastically.

And these aren’t just random cases. Defense firms like Anduril, Hadrian, and Divergent are ramping up manufacturing in the U.S., choosing AI-enhanced American labor over offshore alternatives. Additionally, funds like American Dynamism from Andreessen Horowitz are solely dedicated to fostering U.S. innovation.

Palantir plays a crucial role in the Department of Defense and intelligence circles, developing AI and data analytics solutions. While some critics accuse the tech industry of fostering ties with the military-industrial complex, Sankar advocates for more companies to support military efforts.

He points to established defense contractors, like Boeing and Lockheed Martin, as contributors to the underlying problem.

“Integration fostered conformity… It’s often more about financial engineering rather than actual engineering,” he pointed out. “True progress comes from competition, not complacency.”

However, Sankar emphasizes that innovation and production are inseparable; neglecting one leads to losing the other. “The myth of globalization suggests that ‘we innovate here, they produce there.’ But if we keep producing, that’s enough incentive to drive innovation. We can’t abandon production,” he explained.

A vital aspect of Sankar’s strategy draws inspiration from World War II, where companies rapidly switched from consumer goods to military supplies. With high-volume production, firms like General Motors and Ford successfully adapted their output.

He insists that flexibility—not merely stockpiling weapons—is key to deterring conflicts.

“The situation in Ukraine teaches us: Stockpiling isn’t deterrence. This has guided our strategy since the Cold War,” he noted. “We witnessed ten years’ worth of production during a mere ten weeks of warfare. The intent was to replenish our arsenal of freedom.”

Sankar envisions a comprehensive overhaul of America’s manufacturing capabilities, stating, “I want more than ten times the current equipment. You’ll need to reevaluate all limitations.”

The implications extend far beyond the defense sector.

“Eighty percent of our generic drugs rely on China,” he stressed. “In a conflict scenario, what would happen if generic antibiotics were no longer available? Would families be forced to choose between their child’s life and national resolve?”

This dependence fuels Sankar’s urgency. America stands at a crossroads. “We could slide into irrelevance and subjugation, or we can actually take action,” he stated.