Today : Sep 28, 2025
Business
07 September 2025

Palantir CEO And Trump Clash Over Tech Visas

As tech companies cut jobs but raise pay for top talent, Trump and Elon Musk ignite debate over the future of skilled immigration and the value of high-skilled workers.

In a week marked by fierce debate and shifting perspectives on the future of skilled labor in the United States, both the tech industry and political leadership have found themselves at the crossroads of innovation, immigration, and economic strategy. The conversation has been propelled by recent remarks from Palantir CEO Alex Karp and President-elect Donald Trump, each offering a vision for the value of high-skilled workers—albeit from different vantage points.

At the heart of the matter lies a paradox: while technology companies are trimming their workforces, the demand—and compensation—for top-tier talent appears to be climbing. According to Fortune, President-elect Trump, speaking with the New York Post on September 6, 2025, voiced strong support for the H-1B visa program, which allows U.S. employers to temporarily employ foreign workers in specialty occupations. "I’ve always liked the visas, I have always been in favor of the visas. That’s why we have them," Trump said, emphasizing, "I have many H-1B visas on my properties. I’ve been a believer in H-1B. I have used it many times. It’s a great program."

Trump’s endorsement comes at a time of internal strife among his own supporters, some of whom have criticized the H-1B program as inconsistent with "America First" policies. The debate intensified when Elon Musk, now cohead of the Department of Government Efficiency and himself a former H-1B visa holder, entered the fray. Musk, who has long been an outspoken advocate for skilled immigration, defended the program vigorously. In a heated online exchange on September 5, Musk declared, "The reason I’m in America along with so many critical people who built SpaceX, Tesla, and hundreds of other companies that made America strong is because of H1B. Take a big step back and F--K YOURSELF in the face. I will go to war on this issue the likes of which you cannot possibly comprehend."

This passionate defense underscores the essential role that foreign-born talent has played in shaping America’s most innovative enterprises. Musk’s own journey—from South Africa to Silicon Valley—exemplifies the contribution of immigrants to the nation’s technological dominance. As Fortune notes, Musk has argued that the tech sector’s need for foreign workers is not a matter of ideology but of economic necessity.

The politics of skilled immigration, however, are anything but straightforward. Trump’s current support for the H-1B program stands in stark contrast to his 2016 campaign rhetoric, when he labeled the program "very bad" and "unfair" for U.S. workers. Yet, even then, his businesses—including the Mar-a-Lago club—relied on H-1B visas to fill positions ranging from waiters to cooks. Trump Media & Technology Group, the parent company of Truth Social, has also used the program to employ workers. During his first term, Trump signed the "Buy American and Hire American" executive order in 2017, which called for a review of the H-1B program to ensure it did not disadvantage American workers.

Fast-forward to June 2025, and Trump’s position appears to have evolved. On the All-In podcast, he proposed that foreign students graduating from U.S. colleges should automatically receive a green card, stating, "I think you should get automatically, as part of your diploma, a green card to be able to stay in this country." This shift reflects a growing recognition—across the political spectrum—of the strategic importance of retaining top global talent. Yet, it also highlights the tension between protectionist impulses and the imperatives of a knowledge-based economy.

Meanwhile, the tech industry itself is in the midst of transformation. Palantir CEO Alex Karp, speaking at the company’s AIP Con 8 conference on September 6, painted a picture of a future where skilled workers are not just valuable, but "crazy valuable." As reported by Fortune, Karp stated, "Workers become more valuable. The person at the top is actually crazy valuable. People with technical expertise are crazy valuable." He went further, predicting that "artist-shaped people are going to be incredibly valuable, and they're going to demand to be very highly paid."

Karp’s optimism for skilled workers stands in contrast to the broader trend of layoffs in the tech sector. Despite Palantir crossing $1 billion in revenue for the first time in the second quarter of 2025 and nearly doubling U.S. commercial revenue from a year earlier, the company is planning to reduce its workforce. "Our revenue is going up; our sales force is going down. The number of people we plan to have in the future is less than now," Karp revealed. This approach mirrors a Silicon Valley trend toward smaller, more agile teams—a response to both economic pressures and the explosive growth of artificial intelligence.

The AI boom has created a stark divide within the tech workforce. While a select group of AI researchers have secured hundred-million-dollar deals from giants like Meta, thousands of other tech workers have faced layoffs at companies such as Microsoft. For those who remain, Karp warns, the expectations are high. Describing Palantir’s work culture, he said, "We don't do holidays. I'm working all the time." Employees often refer to Palantir as "an artist colony," signaling an environment where creative and technical excellence are paramount, but where the demands are relentless.

These developments raise pressing questions for the future of work in America. Will the drive for efficiency and innovation continue to shrink the tech workforce, even as the value of top talent soars? Can the U.S. maintain its edge in technology without robust immigration policies that attract and retain the world’s best minds? And how will shifting political winds shape the opportunities available to both American and foreign-born workers?

For now, the answers remain uncertain. What is clear is that the stakes are high—for companies, workers, and the country as a whole. As the U.S. navigates the challenges of a global economy increasingly defined by knowledge and innovation, the debate over who gets to participate in that future is far from over. But if recent statements from both business and political leaders are any indication, the value of skilled labor—wherever it comes from—is set to remain a defining issue for years to come.

In the end, the contest over talent, technology, and immigration is not just a policy debate—it’s a battle for the soul of America’s economic future.