by LOIS PARSHLEY
Silicon Valley oligarchs like Peter Thiel and Marc Andreessen have much to gain from Donald Trump’s seizure of Greenland, both as a source of rare earth minerals to feed the AI boom and as a site for a libertarian “crypto state.”
President Donald Trump started his second term with his sights set on Greenland.
When Trump first proposed buying the arctic nation during his first administration, it was treated like a joke. But in a phone call last week with Denmark’s prime minister, who controls the autonomous territory’s foreign policy, the president doubled down on his efforts to seize power. In the “aggressive and confrontational” conversation, Trump threatened tariffs if he didn’t get his way. In a news conference earlier this month, he also refused to rule out the use of military force. Now Denmark is taking him seriously: on Monday, it announced a $2 billion military expansion in the Arctic.
Though the island is not for sale, the president emphasizedGreenland’s importance to US national security. Left unspoken: a US takeover could weaken the country’s mining laws and ban on private property, aiding Trump donors’ plans to profit from the island’s mineral deposits and build a libertarian techno-city.
Trump, who has summarized his own natural resources policy as “drill, baby, drill,” would likely approach the island’s natural resources quite differently from Greenland’s current government, which has opposed large extractive projects.
In 2019, Trump’s ambassador to Denmark and Greenland visited a major rare-earth mining project on the island shortly before Trump’s first calls to buy the country. Opposition to the mine ushered liberal political party Inuit Ataqatigiit into power two years later, which halted the mine and banned all future oil development.
The president’s renewed intention to take over Greenland has reignited debates over its sovereignty, as the country grapples with the trade-offs between economic opportunity and independence from Denmark. As the country’s glaciers recede, it’s also facing sweeping climate-driven transformations, threatening traditional industries like fishing and hunting and exposing valuable mineral resources.
These shifts have prompted interest from powerful players associated with Trump. Tech moguls in the front row of his inauguration, like Mark Zuckerberg and Jeff Bezos, are also investors in a start-up aiming to mine western Greenland for materials crucial to the artificial intelligence boom.
That company, KoBold Metals, uses artificial intelligence to locate and extract rare earth minerals. Their proprietary algorithm parses government-funded geological surveys and other data to locate significant deposits. The program pinpointed southwest Greenland’s rugged coastline, where the company now has a 51 percent stake in the Disko-Nuussuaq project, searching for minerals like copper.
Just two weeks before some of its investors were glad-handing at the Capitol celebrations, KoBold Metals raised $537 million in its latest funding round, bringing its valuation to almost $3 billion. Among the contributors was a leading venture capital firm founded by Marc Andreessen, an early Silicon Valley entrepreneur who has helped shape the administration’s technology policies, including consulting with Trump’s Department of Government Efficiency as a self-proclaimed “unpaid intern.”
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