The Founders Fund Retreat and the Clash of Worlds

In September 2015, the Founders Fund hosted a retreat at an eco-resort in British Columbia, where computer pioneer Alan Kay and other outsiders were invited to share their insights. During breakfast, Peter Thiel, a Founders Fund leader, listened incredulously as Alan Kay, known for the Dynabook, expounded on his experiences. Thiel's incredulity grew until he demanded, 'Who ARE you?' Kay, a legend in his own time, was stunned and struggled to explain his background. This moment resonated with the author, who later read Sharon Weinberger's op-ed in The New York Times, which argued that Silicon Valley's values had not changed but its customers had. Weinberger claimed that the industry's current love affair with military tech was a result of market adaptation rather than a genuine shift in values.

War Bros Didn’t Always Rule Silicon Valley

The Counterculture and the Military Industry

The author disagrees with Weinberger's perspective. He argues that the new generation of technologists, identifying with the counterculture, brought a set of values that unleashed innovation and set the stage for the industry's current wealth. While the defense industry provided funding for innovations like GUI and the internet, the new generation was characterized by idealism, a hackerish love of building things, and disdain for conventional practices. This mindset changed not only the course of the computer industry but also the culture of American business. Before Apple Computer, a CEO wouldn't dare come to work in anything but a suit. The Valley's entrepreneurial culture emerged from a fusion of the counterculture hackers and engineers who believed that technology would change the world, and the more traditional semiconductor culture, which quickly escaped its military roots.

The Transition from Defense to Consumer

The author contends that Silicon Valley did not turn from defense to consumer products because that's where the money was. Apple, for example, had to fight the image that their products were like toys, as they eschewed the macho industrial vibe of previous machines in favor of a friendlier look and feel. It took decades for the company to significantly break into the corporate market. The personal computer industry, notably Apple, was born at the Homebrew Computer Club, hosted by a political radical named Lee Felsenstein.

The Current State of Silicon Valley

Historian Margaret O'Mara's nuanced study of the relationship between the Valley's military past and the counterculturists who built the modern industry supports the author's perspective. She argues that the Valley's counterculture shift wasn't a mercenary pivot but a genuine movement toward making the world better. The market's move from defense tech to consumer, she says, was a reflection of a generational political shift. In the presidential elections of 1980 and 1984, the Valley voted decisively for Reagan. But as the Valley increasingly tilted toward the counterculture, that all changed, and for many recent cycles those tech-heavy zip codes have been tattooed in deep blue hues. While Trump-affiliated War Bros are currently getting attention, they represent only a small cohort of self-interested multibillionaires. Essentially, they've hijacked the values of the Valley.

Conclusion

Silicon Valley's history is complex and multifaceted. The industry's values have evolved over decades, influenced by both the counterculture and the pursuit of wealth. The current state of the Valley is shaped by a blend of historical factors, including the influence of the counterculture, the pursuit of wealth, and the changing political landscape. The War Bros, while currently getting attention, represent only a small portion of the Valley's values and do not accurately reflect the broader movement toward making the world better.

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