The Curious Portfolio of Peter Thiel

The pursuit of fortune, one observes, is rarely guided by logic. Indeed, the truly wealthy often seem to operate on a plane of exquisite contradiction. Peter Thiel, a gentleman who has clearly mastered the art of acquiring capital, is a case in point. He co-founded PayPal – a rather pedestrian triumph, if one is being honest – and was an early admirer of Facebook, now Meta Platforms. He even dabbled in the creation of Palantir Technologies, a name that conjures images of shadowy intrigue, rather than mere software. One might assume, therefore, that his portfolio would be overflowing with the currently fashionable trinkets of Artificial Intelligence. How very predictable. The truth, as is so often the case, is far more diverting. Mr. Thiel’s hedge fund, it transpires, holds a mere trio of AI-adjacent stocks. And neither Nvidia, nor his own Palantir, grace the list. A most peculiar omission, wouldn’t you agree?

1. Tesla

Mr. Thiel, with a characteristic lack of haste, diminished his stake in Tesla by a considerable 76% in the third quarter of 2025. Yet, the electric carriage remains the largest holding in his collection. A man of paradoxes, our Mr. Thiel. He once mused, in a conversation with Tyler Cohen, that AI was “slightly overhyped.” A refreshingly cynical viewpoint in a world drowning in algorithmic enthusiasm. He did concede, however, that self-driving cars represented a “significant innovation.” A rather understated admission, considering the potential for such devices to render human chauffeurs utterly obsolete.

Tesla, of course, has been pioneering this particular folly for some time. They possess more miles of autonomous data than anyone else, a fact that is either profoundly impressive, or simply a testament to the sheer number of Teslas navigating our increasingly congested roadways. The recent reduction in Tesla holdings, however, is rumored to be a disagreement with the CEO’s obsession with humanoid robots. Mr. Thiel, it seems, views the vision of a billion robotic servants within a decade as… ambitious. One might even say, a trifle vulgar.

2. Microsoft

Mr. Thiel, with a sudden burst of conventionality, acquired 49,000 shares of Microsoft in the third quarter. This purchase elevated the tech giant to the second most prized possession in his portfolio, accounting for a rather substantial 34% of his holdings. He seems to subscribe to the notion that value ultimately shifts from those who sell the shovels to those who actually build the mines. Nvidia, with its GPUs, is, in his estimation, merely a purveyor of tools. Microsoft, however, is a builder – integrating AI, particularly the generative variety, into its cloud services and software. A distinction, one must admit, of considerable merit.

One wonders if he regrets this investment following the recent, rather unseemly, decline in the stock price. The cause? Lower-than-expected growth in its Azure cloud service. The truth, however, is far more prosaic: Microsoft is allocating more data center infrastructure to internal needs. In other words, they are building, rather than selling. A strategy, one suspects, that Mr. Thiel wholeheartedly approves of.

3. Apple

Apple, a company previously considered a laggard in the generative AI race, also attracted Mr. Thiel’s attention in the third quarter. He initiated a new position, acquiring over 79,000 shares. A most unexpected turn of events. One can only speculate as to his motives. But two factors likely weighed heavily on his decision.

First, Apple boasts one of the largest AI distribution networks in existence, with 2.5 billion iPhones currently in use. A truly impressive number. Its iPhone sales remain robust, and could accelerate with the integration of Alphabet’s Google Gemini with Siri. They are also reportedly planning to unveil AI-powered smart glasses. A device that promises to further expand their already considerable reach. Second, Mr. Thiel clearly approves of Apple’s strategy to design its own AI chips. He once observed that “vertical integration is an under-explored modality of technological progress.” Apple’s custom silicon, it seems, allows them to integrate vertically in ways that many of their competitors cannot. A most astute observation, wouldn’t you agree? The pursuit of wealth, after all, is not merely about acquiring capital; it is about exercising control.

2026-02-09 13:12

1. Tesla

2. Microsoft

3. Apple

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