Max Palevsky
Max Palevsky | |
|---|---|
| Born | 24 July 1924 Chicago, Illinois, U.S. |
| Died | 5 May 2010 (aged 85) |
| Occupation(s) | Computer pioneer, venture capitalist, philanthropist, art collector |
| Known for | Founder of Scientific Data Systems; early investor in Intel; member of Malibu Mafia |
Max Palevsky (July 24, 1924 – May 5, 2010) was an American pioneer in computer technology, a venture capitalist, philanthropist, and an avid collector of art. He belonged to the Malibu Mafia, a coalition of affluent Jewish American donors who supported progressive and liberal initiatives.
Early life
Palevsky was born in Chicago to Jewish immigrant parents, Izchok (Isadore) Palevsky and Sarah Greenblatt, and raised in a modest environment. His father worked as a house painter and commuted using the city's streetcar system. As the youngest of three children, Palevsky’s brother Harry was involved in the atomic bomb project at Los Alamos National Laboratory.
Following his graduation from public high school, Palevsky served as a meteorologist in the US Army Air Corps during World War II. His military training included studies in science and electronics at the University of Chicago and Yale University. Utilizing the GI Bill after the war, he earned a Bachelor of Science in mathematics and a Bachelor of Philosophy in philosophy from the University of Chicago in 1948. Additionally, he pursued advanced philosophy courses at UCLA, UC Berkeley, and the University of Chicago.
Computers
Inspired by a lecture on emerging computing technology delivered by John von Neumann at Caltech, Palevsky left his doctoral studies in philosophy at UCLA to enter the computer field in 1950. He began working at Northrop Aircraft with a weekly salary of $100, assembling replicas of the MADIDDA, an advanced specialized computer designed by physicist Floyd Steele for solving differential equations. The MADIDDA, priced around $25,000 to $30,000, represented one of the last dedicated analog differential analyzers before electronic computers became dominant.
When Northrop’s division was acquired by Bendix Corporation in 1952, Palevsky remained as a project engineer focusing on digital differential analyzer designs and contributed to Bendix’s initial computer logic development. Bendix introduced the Bendix G-15 in 1956, sometimes controversially regarded as the first personal computer. Palevsky worked on the DA-1 analyzer attachment for the G-15, which combined features reminiscent of the MADIDDA with the G-15’s flexible input configuration.
In March 1957, Palevsky established Packard Bell Computer Corp., an affiliate of Packard Bell Corporation located in West Los Angeles. Serving as vice president and director, he led research and development efforts in digital computing that culminated in creating the first silicon-based computer, the PB 250, which attained moderate commercial success. By April 1960, Packard Bell Computer Corp. secured an exclusive partnership with Bailey Meter Co. to implement PB250 technology within power plant control systems. Palevsky also managed construction of a new 20,000 square foot facility at 1935 Armacost Avenue to support expanded manufacturing and systems engineering operations. During this timeframe, he presented significant industry talks including one at the 1958 international conference on analog computation held in Strasbourg, France.
Scientific Data Systems
Recognizing an underserved niche comprising approximately 10% of small to medium scientific and process control computer users, Palevsky sought venture capital backing. Through connections at the University of Chicago, he raised $1 million from investors including Arthur Rock and members of the Rosenwald family (noted for their Sears Roebuck wealth). In September 1961, Palevsky departed Packard Bell along with eleven colleagues to found Scientific Data Systems (SDS) based in California.
Within its first year, SDS introduced the profitable SDS 910 model aimed at scientific and medical computing markets. From 1962 through 1965, SDS released seven commercially successful computer systems. On March 15, 1966, they launched the Sigma 7 model that expanded SDS’s reach into business data processing as well as time-sharing and multiprocessing capabilities. The Sigma 7 effectively bridged scientific applications with commercial computing demands, enabling SDS to capture over two percent of the digital computer market by 1966 and maintain steady growth.
In May 1969, with assistance from Arthur Rock, Palevsky sold SDS to Xerox for $920 million. Following this transaction, he joined Xerox as a director and chairman of its executive committee. His initial investment of $60,000 had appreciated to nearly $100 million. Palevsky retired from Xerox in May 1972.
Politics
In 1972, Palevsky contributed $319,000 to George McGovern and played a pivotal role in managing Tom Bradley’s victorious 1973 campaign for Los Angeles mayor. He cultivated political relationships, including with former California governor Gray Davis, and joined the National Governing Board of Common Cause in 1973. Demonstrating his commitment to curbing excessive political donations, Palevsky supported California Proposition 25, a campaign finance reform measure, with a $1 million contribution.
Though affiliated with the Malibu Mafia, Palevsky was less enthusiastic about some of their initiatives, such as efforts to dismantle Big Oil. In 1980, he broke ranks with fellow Malibu Mafia members who backed Ted Kennedy and John B. Anderson by endorsing Jimmy Carter’s bid for re-election.
In 2007, Palevsky actively assisted in fundraising efforts for Barack Obama’s 2008 presidential campaign.
Arts, culture, and venture capital
As a venture capitalist, Palevsky invested in companies like Intel, a major semiconductor enterprise known for advancing memory chip and microprocessor technology. He joined the board alongside Arthur Rock when Intel was founded on July 18, 1968 (originally named NM Electronics Corporation), with Rock raising $2 million in venture capital. Palevsky held the title of director emeritus beginning in February 1998.
He also took on leadership roles at Rolling Stone, becoming director and chairman after acquiring a controlling stake in 1970 to rescue the magazine from financial difficulties. During this period, he formed a friendship with journalist Hunter S. Thompson. In December 1970, Palevsky entered the film industry through Cinema X, a collaboration with Cinema V. By November 1973, he partnered with Peter Bart, former Paramount vice president, producing six films under contract. His film financing credits include Fun with Dick and Jane, Islands in the Stream (both released in 1977), and Endurance (1998). The author Albert Goldman dedicated his 1988 biography The Lives of John Lennon to Palevsky. Additionally, he joined the board of the American Ballet Theatre in June 1977.
Palevsky held executive positions at Silicon Systems Inc. (director and chairman from 1983 to 1984), Daisy Systems Corporation (chairman and CEO), and Komag Corp. (director from 1984 to 1999), all companies focused on electronic design automation and data storage technologies.
A passionate collector of Japanese woodblock prints, Palevsky was an active patron of visual arts organizations. He founded the Palevsky Design Pavilion at the Israel Museum in Jerusalem, curated an Arts & Crafts collection at the Los Angeles County Museum of Art (LACMA), and contributed $1 million towards establishing the Los Angeles Museum of Contemporary Art. In 2001, he pledged his art collection to LACMA; however, his assemblage of approximately 250 pieces was auctioned by Christie's during the fall of 2010.
Palevsky also financed the renovation of the Aero Theater in Santa Monica by the American Cinematheque, which reopened in January 2005 bearing his name.
The University of Chicago
From 1972 until 1982, Palevsky served as a trustee at his alma mater. In 1972, he established the Palevsky Professorship in History and Civilization and later created the Palevsky Faculty Fund in 1996.
In 2000, he made a $20 million donation aimed at improving residential life on campus. By 2001, three large dormitories connected via tunnels were completed and named in his honor. A single-screen cinema on campus also carries his name and serves as the venue for Doc Films, recognized as the longest-running student film society in the United States.
Personal life
Palevsky entered into matrimony six times and fathered five children. His first marriage, to Mary Joan Yates (later known as Joan Palevsky), lasted from 1952 until 1968. She secured one of the most substantial divorce agreements in California's history at that time and became a prominent philanthropist. Together, they had two children: Madeleine and Nicholas Palevsky. His third spouse, Lynda L. Edelstein, gave birth to his sons Alexander and Jonathan. His fourth wife, Jodie Evans, a political activist, is the mother of Matthew Palevsky.
He possessed residences of notable architectural importance, designed by Ettore Sottsass of the Memphis group, Craig Ellwood, George Washington Smith, and Coy Howard. These homes were featured in the publication Three California Houses: The Homes of Max Palevsky.
In both 1985 and 1988, Palevsky was listed on the Forbes 400 with estimated fortunes of $600 million and $640 million, respectively.
Palevsky passed away from heart failure at the age of 85 on May 5, 2010, at his home in Beverly Hills.