The career of US tech billionaire Peter Thiel has been characterised by outstandingly bold plays, some of which make sense at the time, and some which don’t. His most recent public positions – that US President Donald Trump should double-down on the trade war with China, and that Google is “seemingly treasonous” for its collaborations with the Chinese government – appear to fit within the second paradigm.
German-born Thiel became a New Zealand citizen in 2011 despite spending just 12 days in the country. Since then he’s visited periodically, buying property in Queenstown and Wanaka and investing in several New Zealand businesses including Xero and Pacific Fibre.
Thiel’s first big payday came from the 2002 sale of Paypal, which he co-created, to eBay for $1.5 billion. He has since invested in Facebook – becoming the first outside investor with a 10.2% stake – as well as prominent companies including Airbnb, Yelp, SpaceX and LinkedIn.
One of his most prominent creations, as well as one he’s been busy on recently, is data analytics company Palantir Technologies. Palantir mines data for clients in both the private and public sectors. Private companies include Morgan Stanley, Airbus and Fiat Chrysler while government agencies include the FBI and CIA. New Zealand’s SIS and GCSB also reportedly use its services.
Palantir recently secured a US Army contract worth up to $800 million. The multi-year contract entails the building of intelligence systems to aid troops in remote environments; in winning the contract, Palantir beat more traditional defence company Raytheon, marking something of a change in guard.
Rumours have circulated for years about Palantir considering an IPO, although this is now expected to be delayed until next year. The company was most recently valued at $US20b.
Along with Palantir, Thiel has a hand in several other growing companies covering everything from wine to mobile networks. One area he will keeping a particularly close eye on is the upcoming implementation of the US’ next generation 5G networks. The Trump campaign recently voiced support for a free-market approach to the network – a development surely pleasing to Thiel, given his Rivada Networks has a patent on technology needed to access the network.
Thiel’s relationship with Donald Trump has had its ups and downs but appears to be relatively cordial despite Thiel expressing some frustrations with the US president last year. Last November Thiel said Trump had been “relatively successful” and pledged his support for the 2020 presidential campaign. He has also contributed heavily to the Republican Party and conservative groups, putting $1m into conservative advocacy group Club for Growth last year.
Early in 2018 Thiel made international headlines for reasons unrelated to money or politics, for a change, when he elected to build a “panic room” in his Queenstown home. The move shone a light on a growing number of wealthy Americans choosing New Zealand as a ‘doomsday base’ to flee to in the event of a global catastrophe.
Photo: Heisenberg_Media
2018: $3.6 billion