Live data from Hacker News

Saudi Money Fuels the Tech Industry. It’s Time to Ask Why

nytimes.com

31–40 of 289 posts

Re: Saudi Money Fuels the Tech Industry. It’s Time to Ask Why

#31

If the CIA, Russia, China, and Saudi Arabia all fund startups, would the conflicting interests then cancel each other out?

Yes, and this is largely the point. The reason foreign governments invest in U.S. tech is because they see it as a path to good relations with the U.S. government. Or at least good enough to avoid getting bombed and having their assets frozen. It's not about making money, it's about reducing geopolitical risk. If these countries wanted to make money then they'd just sell weapons, traffic drugs, build stuff with slave…

That isnt the main reason. They do it to make money, or at least protect the money they have without overheating their own economy. The Chinese don’t buy treasuries to make friendly with the USA, they do it because they don’t have any better options to deal with their trade surpluses. There is just nowhere else liquid enough to park a few hundred billion as needed.

Why they fund startups is even more self interested, they really do want to make money, and believe it or not, it is much easier and profitable to do that through investing then to become a rogue state.

Re: Saudi Money Fuels the Tech Industry. It’s Time to Ask Why

#32
post #12

Earlier quoted context omitted.

...How? How do you get a diverse and often quarrelsome world to agree on something that huge?

Minimum standards of conduct before a nation is allowed to do trade another nation or to join a trade agreement...or basically like most other negotiations.

So party A has high standards, parties B and C don't and just trade with each other. Party A withers and and its resources are eventually aligned with B and C anyway. This is not an effective way to fight anything, it's just suicide.

Re: Saudi Money Fuels the Tech Industry. It’s Time to Ask Why

#33

The tech industry has, historically and in aggregate, had pretty solid rates of returns. If I was sitting on a dwindling store of natural resources as my primary store of wealth, I would probably want to try to diversify that wealth into other areas and grow that wealth aggressively while my potentially limited income source is still highly profitable. I'm not sure that more nefarious aims need to be posited than sim…

Agreed. Occam's razor is well applied here. Everyone else is investing in tech to get rich, I see no reason to suppose card carrying capitalist Saudi's wouldn't be driven by the allure of profit as well.

[deleted]

Re: Saudi Money Fuels the Tech Industry. It’s Time to Ask Why

#34

If the CIA, Russia, China, and Saudi Arabia all fund startups, would the conflicting interests then cancel each other out?

Yes, and this is largely the point. The reason foreign governments invest in U.S. tech is because they see it as a path to good relations with the U.S. government. Or at least good enough to avoid getting bombed and having their assets frozen. It's not about making money, it's about reducing geopolitical risk. If these countries wanted to make money then they'd just sell weapons, traffic drugs, build stuff with slave…

[deleted]

Re: Saudi Money Fuels the Tech Industry. It’s Time to Ask Why

#35

Earlier quoted context omitted.

Minimum standards of conduct before a nation is allowed to do trade another nation or to join a trade agreement...or basically like most other negotiations.

This is the same country that the US funnels weapons into, and uses for leverage in the region. Does it make the US complicit in the actions that Saudi Arabia does? Now does it make sense to ask for Saudi Arabia to be sanctioned when it comes to business investments?

I think we are arguing it is.

Re: Saudi Money Fuels the Tech Industry. It’s Time to Ask Why

#36

If the CIA, Russia, China, and Saudi Arabia all fund startups, would the conflicting interests then cancel each other out?

Their interests aren't conflicting - their interests are making sure that the entrenched powerful class in those four countries continues to be the entrenched powerful class. Surveillance technology, weakened protections for labor (cf. paulg's factually-correct comment about how any industry that still has unions is ripe for disruption), a dependency on access to capital, etc. are in all of these countries' interest.

It's like the European monarchies of a couple hundred years back: even if the countries fought wars against each other for territorial squabbles or whatever, their deeper interest was in maintaining the system, and on that they were all allied. So they married each other, met in the Congress of Vienna, etc., because they knew that in supporting each other and the current balance of power, they themselves would be much more likely to keep power.

Re: Saudi Money Fuels the Tech Industry. It’s Time to Ask Why

#37
post #16

Earlier quoted context omitted.

Even if it isn’t nefarious, maybe we still shouldn’t let them profit off our liberal democracy while they exploit their own citizens, enslave foreigners, fund terrorism, and abuse women. Maybe we shouldn’t let them have their cake and eat it too. Make them pick between human rights and investing in the S&P500.

Well if you want to talk sanctions, I'd say selling them $110 billion in weapons a few months back is slightly more concerning than slamming shut the bank counter screens on them.

"Psst.. You wanna see how far the nefariousness goes? Follow the money.., follow the orb..."

https://cdn.vox-cdn.com/uploads/chorus_asset/file/8559731/Ge...

Re: Saudi Money Fuels the Tech Industry. It’s Time to Ask Why

#38

The tech industry has, historically and in aggregate, had pretty solid rates of returns. If I was sitting on a dwindling store of natural resources as my primary store of wealth, I would probably want to try to diversify that wealth into other areas and grow that wealth aggressively while my potentially limited income source is still highly profitable. I'm not sure that more nefarious aims need to be posited than sim…

The article is really asking "why does the tech industry accept Saudi money?", not "why does Saudi Arabia invest in tech companies?"

Re: Saudi Money Fuels the Tech Industry. It’s Time to Ask Why

#39

The tech industry has, historically and in aggregate, had pretty solid rates of returns. If I was sitting on a dwindling store of natural resources as my primary store of wealth, I would probably want to try to diversify that wealth into other areas and grow that wealth aggressively while my potentially limited income source is still highly profitable. I'm not sure that more nefarious aims need to be posited than sim…

Even if it isn’t nefarious, maybe we still shouldn’t let them profit off our liberal democracy while they exploit their own citizens, enslave foreigners, fund terrorism, and abuse women. Maybe we shouldn’t let them have their cake and eat it too. Make them pick between human rights and investing in the S&P500.

Maybe the problem is the point where they exploit their own citizens, enslave foreigners, fund terrorism, and abuse women - not where they do all that and then invest money in US tech industry? Otherwise it sounds like we're ok with all this enslavement, abuse and all, but just to a point - and the breaking point where we say "no more! we really need to have a serious talk about it now!" is buying AAPL stock. Doesn't sound good to me.

Re: Saudi Money Fuels the Tech Industry. It’s Time to Ask Why

#40

Earlier quoted context omitted.

Yes, and this is largely the point. The reason foreign governments invest in U.S. tech is because they see it as a path to good relations with the U.S. government. Or at least good enough to avoid getting bombed and having their assets frozen. It's not about making money, it's about reducing geopolitical risk. If these countries wanted to make money then they'd just sell weapons, traffic drugs, build stuff with slave…

That isnt the main reason. They do it to make money, or at least protect the money they have without overheating their own economy. The Chinese don’t buy treasuries to make friendly with the USA, they do it because they don’t have any better options to deal with their trade surpluses. There is just nowhere else liquid enough to park a few hundred billion as needed. Why they fund startups is even more self interested,…

[deleted]
Post reply on HN