During the pandemic-era tech boom of 2020 to 2022, tech companies went to incredible lengths to hire and retain staff. Free high-end food, massages, laundry services, and ping-pong tables were par for the course for startups seeking to attract new hires, and, let’s face it, normalise a culture where workers stay in the office for their entire waking day.

In the wake of the mass tech layoffs of 2022, things are a bit more restrained. However, according to the Wall Street Journal, free nicotine pouches have become part of the package at companies like Palantir.

Let’s take a look at what is happening.

Free pouches at tech companies

In 2024, we wrote about the growing trend of using nicotine pouches within finance. Media outlets like Bloomberg News highlight how pouches were replacing prescription drugs like Adderall. The tone of that particular article was odd because it presented swapping an amphetamine like Adderall for a mild stimulant like nicotine pouches as if it were a problem. To me, that looks like harm reduction.

In the WSJ article, the focus is on tech startups. Just like finance, tech is a highly competitive space where gaining a productivity edge is vital. The author points out two nicotine startups that, last year, made nicotine pouch vending machines for what they describe as the “analytics company Palantir Technologies”.

That is one way to describe Palantir. Another way is that they, as defined by comedian Tim Dillon, build autonomous drone technology for wars, domestic surveillance technology, and that Peter Thiel, a man with an intense interest in the anti-Christ, heads up the company.

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Whatever you think about Thiel’s business, they offer free pouches for employees over 21. But why?

Why are tech companies giving out pouches for free?

The author puts the rise of pouches in tech down to a few issues. Firstly, AI has increased the competitiveness within Silicon Valley. In his famous 1930 essay “Economic Possibilities for our Grandchildren”, John Maynard Keynes predicted that productivity growth could allow a 15‑hour workweek, with most people freed for “non‑economic” pursuits once their material needs were met. Once again, it seems that automation technology has not set us free but has instead forced us to work harder.

Nicotine pouch vending machine in a tech company office break area

Secondly, Silicon Valley is full of eccentric people deeply invested in “biohacking”. From microdosing psilocybin to “young” blood transfusions or Soylent-style meal replacement, these tech bros (and yes, they are almost always bros) will try anything to make gains. In this context, nicotine’s ability to improve focus and alertness makes sense for under-pressure workers.

Finally, as the article points out, many tech workers are very conscious of coffee’s half-life. Sure, coffee can perk you up and help you work harder and longer, but, per a tech founder quoted in the article, “If you drink a cup of coffee in the afternoon, it could keep you up all night.” Nicotine does not cause that particular problem because its half-life is 1 to 2 hours, compared to coffee’s 3 to 7 hours.

Conclusion

Overall, the article treats nicotine pouches more reasonably than many other news outlets. Sure, parts of it frame pouches as more risky than they are, while also claiming it is a gateway to smoking. However, other paragraphs rightly acknowledge that pouches are far safer than smoking.

Overall, the most interesting part is the assertion that Silicon Valley tech culture tends to medicalise or “pharmacologise” work. One wonders if impressionable nicotine-naive staff might feel pressured to use pouches so they can put in longer hours and more effort. As bad as that is, it’s probably relatively low down the list of ethical questions surrounding Palantir.