By Rolfe Winkler and John D. McKinnon
Peter Thiel, the billionaire venture capitalist and conservative
libertarian, has long been a misfit in Silicon Valley.
Now as one of the tech industry's main bridges to
President-elect Donald Trump's incoming administration, Mr. Thiel
is playing a central role in helping shape the relationship with a
president most tech titans 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.
The tech industry enjoyed a mostly harmonious relationship with
the White House under President Obama. Despite some discord -- such
as the government's imbroglio with large technology companies over
data surveillance -- the industry and administration mostly agreed
on policies, from the importance of immigration to the need for
free trade. Several companies have had close ties to the White
House. Multiple former executives from Alphabet's Google, for
instance, have worked for the Obama administration.
In a statement Tuesday, Mr. Trump said he values Mr. Thiel's
views on important issues. "Peter is an industry leader, innovator
and a person who cares deeply about the power of the people," Mr.
Trump said. Mr. Thiel, 49 years old, declined to comment through a
spokesman. But previous statements, including an interview with The
Wall Street Journal days after the election, offer a window into
some of his views. Mr. Thiel's politics emerged at Stanford
University, where he studied philosophy as an undergraduate in the
late 1980s and co-founded a conservative student newspaper, The
Stanford Review.
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.
Others close to Mr. Trump, including his daughter Ivanka and her
husband Mr. Kushner, have also sought counsel in tech circles for
how the administration can work with the industry, say people
familiar with the matter.
He is also seeking recommendations from companies he has
invested in, including logistics company Flexport Inc., whose
founder Ryan Petersen says he was asked for trade-policy
recommendations by Trae Stephens, a member of his board and partner
at Founders Fund whom Mr. Thiel brought into the transition
team.
Mr. Petersen responded with a one-page essay arguing that the
U.S. should invest in its ports, calling it an "embarrassment" that
the country can't handle the largest cargo ships. He says he
disagrees with Mr. Trump's protectionist trade message.
Mr. Thiel's investments in multiple companies that do business
with the government, including data-mining company Palantir
Technologies Inc. and rocket maker Space Exploration Technologies
Corp., raise questions whether he will profit from any new
policies. Mr. Thiel has also co-invested in companies with Mr.
Kushner, including real-estate investing startup Cadre and
health-insurance startup Oscar Insurance, which was co-founded by
Mr. Kushner's younger brother Josh.
Mr. Thiel's spokesman declined to comment on whether Mr. Thiel
signed the transition team's ethics agreement that forbids
officials from working on matters intersecting their financial
interests.
Write to Rolfe Winkler at rolfe.winkler@wsj.com and John D.
McKinnon at john.mckinnon@wsj.com
(END) Dow Jones Newswires
December 13, 2016 19:01 ET (00:01 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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