Billionaire investor Peter Thiel criticized the staffing of President Donald Trump's second administration during a recent podcast appearance, saying it relied too heavily on loyalty over competence.

Thiel spoke on the "MD Meets" podcast hosted by German journalist Mathias Döpfner. He described the current term as an overcorrection from the first Trump administration, which he said featured constant internal fighting among officials who could not agree.

"The second administration I think had all these — they overcorrected for the mistake of the first term with all these loyalty tests," Thiel said. "You got sort of an administration staffed by not very smart, but very loyal people."

Thiel added that he wished Trump had appointed more competent people. He noted that both administrations made opposite mistakes in personnel decisions.

Thiel, an early supporter of Trump and backer of Vice President JD Vance, said a full assessment of the administration should wait another decade. He also expressed concern that voter fatigue with the Republican Party could lead some to support Democratic Socialists.

The comments drew attention on social media shortly after the interview aired. Thiel has maintained support for key Trump allies despite the critique of staffing priorities.