According to the publication, those in communication with Thiel say that a bid is unlikely, but added that he has yet to explicitly rule it out. Thiel has been discussing the prospective bid with a small circle of advisers that include Rob Morrow, who has worked at Thiel's hedge fund Clarium Capital.
However, a Thiel victory in California could be difficult, as the President-elect garnered only 30 percent of the presidential vote in California—one of the country's most politically liberal states.
Thiel and Clarium declined to comment on the matter to Politico. A representative at Thiel's Founders Fund did not immediately reply to CNBC's request for comment.
Politico's entire story can be found on its website.