HIGHLIGHTS
- Altman’s stake in Reddit, totaling at least $60 million, grants him 9.2% of the voting power within the online forum platform.
- Altman’s connection with Reddit dates back to 2014 when he revealed his nine-year tenure as a daily user.
- Although he served on Reddit’s board in 2021, he has since stepped down, coinciding with Reddit’s acknowledgment of OpenAI’s ChatGPT as a competitor.
OpenAI’s CEO, Sam Altman, stands to amass substantial wealth post-Reddit’s public offering, reflecting his long-standing investments in the online discussion platform since 2014. As per the company’s prospectus, Altman commands 9.2% of Reddit’s voting power ahead of its IPO.
Altman, currently focused on garnering substantial funds for chip development to address the escalating artificial intelligence computing needs of Microsoft-backed OpenAI, has a track record of investing in numerous startups. Notable among these are Asana, which debuted on the New York Stock Exchange in 2020, and Instacart, which went public on Nasdaq in September. Before spearheading OpenAI in 2015, Altman served as the president of Silicon Valley accelerator Y Combinator, fostering connections with various emerging companies.
In 2014, Altman led Reddit’s Series B funding round with a $50 million investment, spurred by his nine-year daily engagement with the platform. He underscored Reddit’s evolution from a mere pastime to a vital community hub, expressing its personal significance.
Throughout 2021, Altman doubled down on his investments in Reddit, injecting an additional $60 million amid the company’s fundraising efforts. His early $50 million investment saw a 45% surge in value by year-end, positioning him as a significant stakeholder, surpassing even CEO Steve Huffman, according to recent filings.
Although Altman relinquished his board seat in 2021, his departure was met with appreciation from Huffman for his invaluable contributions.
Altman is now focused on expanding the reach of OpenAI’s offerings, notably the popular ChatGPT chatbot, amid Reddit’s acknowledgment of competition from other large language models.
Reddit’s IPO also promises to extend ownership opportunities to its user base, a move lauded by Altman back in 2014, emphasizing the importance of community involvement and equity distribution.
Altman’s foresight and strategic investments underscore his pivotal role in shaping the trajectories of both Reddit and OpenAI, positioning him at the forefront of technological innovation and community-driven platforms.
