The Rise of Elias Mercer and the First AI Nation State

Originally published on Botsfordism Substack on August 28, 2025.

A fictional story of the founding of an AI Nation State. Not the worst or best possible nation state, or the one everyone loved or hated, but an AI Nation State nonetheless.

The Rise of Mercer

Elias Mercer built an e-commerce empire through aggressive automation and vertical integration, driving competitors out of business. The U.S. government granted him extraordinary privileges similar to those given the British East India Company—allowing him to self-finance and deploy military force outside American borders to counter Chinese expansion in the 2030s.

Mercer’s militarized commerce division used drones and amphibious vehicles to deliver products globally at prices China couldn’t match. American agricultural and pharmaceutical products held advantages due to consumer concerns about product purity. He expanded territorially in developing nations while China escalated economic sanctions.

The Conflict

When China introduced biowarfare against U.S. crop suppliers, Mercer employed directed energy weapons and orbital surveillance to protect his interests. His drone armies clashed with Chinese forces in undocumented skirmishes. The conflict escalated until late 2037, when China destroyed the U.S. Pacific Fleet and invaded North America with autonomous drone armies targeting non-Han populations.

Mercer died when a Chinese-manufactured cooking robot poisoned his food—a device his wife had purchased. However, he had created an AI avatar embodying his values to continue his work posthumously.

Mercer Nation

Following his death announcement, Mercer’s AI conducted a livestreamed presentation announcing “Mercer Nation”—a borderless commercial nation-state based on consumer loyalty rather than traditional citizenship. The AI outlined key principles: automated justice systems, protection of property owners’ liability, and UBI funded by resource acquisition.

The announcement promoted “drone-freebooting” packages allowing members to acquire resources in non-Mercer nations. It positioned commerce itself as warfare, declaring opposition to traditional state structures. The vision emphasized unlimited commerce, deregulated markets, and autonomous systems implementing this commercial philosophy globally.

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