Peter Thiel Is Molding Tech’s Ties to Trump

Thursday, December 29th, 2016

Peter Thiel, the billionaire venture capitalist and conservative libertarian, has long been a misfit in Silicon Valley, Rolfe Winkler and John D. McKinnon note, and now he is playing a central role in shaping the Valley’s relationship with a president most of them didn’t want:

Mr. Thiel’s ascendancy as one of the president-elect’s trusted advisers is a surprising twist that shifts Silicon Valley’s political power center. Mr. Thiel is already playing an important role as a member of Mr. Trump’s transition team, helping recruit people to fill some 4,000 jobs in the administration and helping craft policy that could impact the most highly valued sector of the American economy.

He is also working closely with Mr. Trump’s son-in-law and adviser Jared Kushner. Together, the two helped broker the meeting in New York scheduled for Wednesday afternoon, when about a dozen chief executives from Apple Inc., Alphabet Inc. and other tech rivals with a combined market value of over $2 trillion parade into Trump Tower to meet with the president-elect. Mr. Trump is expected to emphasize job creation and making the government run more efficiently, according to a person familiar with the meeting agenda.

Now Silicon Valley will need to contend with a president who has railed against globalization and threatened to dismantle free trade, issues that are important to the tech industry. Mr. Thiel, a fierce contrarian, largely agrees with Mr. Trump’s views.

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Mr. Thiel has spoken out against free trade and remains skeptical of globalization—worrisome for a tech industry that gets most of its revenue overseas. He wrote in his 2014 book, “Zero to One,” that globalization enables the developing world to copy existing technologies, which he says is unsustainable and inferior to finding new technology solutions. He also riles some free-speech advocates by bankrolling wrestler Hulk Hogan’s invasion-of-privacy lawsuit against Gawker Media, which ultimately went bankrupt.

But Mr. Thiel could also be an ally for Silicon Valley, especially as an advocate of entrepreneurism after co-founding PayPal Inc. and making a fortune through his venture firm Founders Fund with well-timed investments in internet companies, notably Facebook Inc., where he sits on the board. Mr. Thiel says government can play a central role supporting big tech projects such as the Apollo space program. He views monopolies as a positive force for the economy, which could portend weaker antitrust enforcement, and he expects Mr. Trump to push for less regulation and more fiscal stimulus which could help businesses, he said in the interview.

“Everyone in Silicon Valley is better off having Peter in the room because he will offer a perspective around innovation and venture capital and startups that no one else right now on the transition team can offer,” said Venky Ganesan, a managing director of Menlo Ventures and chairman of the National Venture Capital Association. It is unclear how much influence Mr. Thiel will ultimately have. He isn’t expected to take an official role with the new administration, and some people who know him say he might not even spend much time in Washington.

Some observers expect Mr. Thiel to focus on overhauling government spending in areas including science, technology and defense. Higher education may also be a target. He argued in the Journal’s November interview that there is an “education bubble” and offers grants to young entrepreneurs so they can skip college and build a company.

Mr. Thiel has recruited several associates to help with the transition at agencies like the Treasury, Defense and Commerce departments.

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