In Argentina, hundreds of demonstrators have taken to the streets, voicing a singular question: “What brings Peter Thiel to the country?” Over recent weeks, various advocacy groups and citizen collectives have gathered outside the mansion where the co-founder of Palantir currently resides, expressing their concerns regarding his perceived influence over a series of new policies introduced by President Javier Milei. Opponents argue that these measures could enable wealthy individuals in the tech sector to seize land and resources, evade tax responsibilities, and market intelligence services that may threaten the security and privacy of Argentine citizens.
Thiel, regarded as one of the most powerful figures in Silicon Valley, purchased a property in Buenos Aires, where he has been living with his family since April. International media speculates that his relocation is linked to an interest in establishing a range of technological ventures in Argentina, which have raised concerns in other markets due to their potential implications for sovereignty and high resource consumption. However, the Milei administration appears eager to promote these initiatives through various legislative reforms.
Reports suggest that Thiel has left his home in California to take advantage of the tax exemptions and favourable laws promised by the Milei government. He is reportedly keen on transforming the Patagonian region into a testing ground for investment and tech business ventures. This includes preparing a legislative framework that would allow the establishment of companies controlled entirely by artificial intelligence (AI), with no human oversight, as noted in a recent article.
Legislative Concerns Surrounding Thiel’s Influence
Concerns regarding Thiel’s alleged sway over Argentina’s legislative agenda intensified following news that he, along with President Milei and a government official linked to state intelligence services, had been invited to a session in the Chamber of Deputies. During this session, a package of reforms promoted by the federal government was under discussion. Although none of the three attended, the invitation raised new anxieties about the possibility that the Milei administration is advancing legal changes to benefit the interests of tech billionaires in Argentina, potentially at the expense of various ecosystems and the fundamental rights of citizens.
A particularly contentious issue is the Regime of Incentives for Large Investments in New Industries, known as the Super RIGI. This legislative project aims to attract investments exceeding one billion dollars in sectors that are currently non-existent in Argentina. Among the proposed areas are the construction of data centres for AI, lithium battery manufacturing, electric vehicles, semiconductors, solar panels, wind turbines, and advanced biotechnology developments.
The regime would also introduce a new legal entity known as the “autonomous corporation,” designed to encompass entities operated entirely by AI agents or robots. Critics argue that this initiative would grant extraordinary fiscal and operational benefits for a period of 30 years, without clearly defining the activities covered, without an official assessment of its fiscal impact, and without establishing verifiable environmental, productive, and technological conditions.
Thiel’s Business Ventures in Patagonia
These concerns are compounded by Thiel’s visible ambitions in Argentine Patagonia. Reports indicate that he acquired a 1% stake in the local oil company Vista Energy for approximately $75 million, aiming to expedite fossil fuel extraction in the region using AI modelling and fracking techniques in Vaca Muerta, one of the country’s key unconventional hydrocarbon reserves.
The Argentine Senate has also deliberated on a reform intended to relax the requirements and restrictions for foreign entities wishing to acquire land in the country. While the proposal was not approved, its consideration led to speculation about the possible establishment of autonomous cities akin to Próspera in Honduras, a project financed by Thiel that has faced criticism for undermining that country’s sovereignty.
Additionally, a decree has been proposed that would require certain civil government agencies in Argentina to share vast amounts of personal information about citizens with state intelligence services. This issue is particularly sensitive, as many Argentines have begun to question whether Palantir holds undisclosed contracts with the Argentine government.
Questions Regarding Thiel’s Direct Influence
It is known that in 2022, Palantir registered a trademark in Argentina to market AI and data analysis software intended for government and institutional use. Although there is no direct evidence that Thiel has influenced the contested reforms, his political and technological vision, alongside his ideological alignment with some of Milei’s proposals, has fueled speculation.
In recent months, President Milei penned an article in the Financial Times outlining his administration’s ambition to position Argentina as a hub for investments in new technologies. In this document, he detailed part of his strategy: to reduce regulation surrounding these tools, offer extensive tax incentives, and encourage the formation of entities operated by autonomous agents.
As of now, there is no official information confirming or denying Thiel’s involvement in Argentina’s legislative processes. Nonetheless, Cecilia Nicolini, Argentina’s representative in the Mercosur Parliament, asserts that the country has become “a sort of laboratory” for libertarian ideas championed by tech billionaires, who could stand to benefit from the proposals advanced by the Milei government.