Sam Altman, the CEO of OpenAI, is on track to make a substantial fortune as Reddit prepares to go public. Altman’s early and consistent investments in the online forum company since 2014 have positioned him with 9.2% of the voting power prior to Reddit’s initial public offering (IPO). With Reddit’s current valuation estimated at approximately $804 million, Altman stands to pocket nearly $362 million from the IPO.
Altman, known for his successful investments in startups like Asana and Instacart, has a history of backing promising ventures. He has also garnered support for OpenAI’s AI computing needs, with Microsoft as a notable partner, aiming to raise trillions for chip development. Before founding OpenAI in 2015, Altman served as the president of Y Combinator, providing him access to numerous small companies ripe for investment.
Expressing his longstanding connection with Reddit, Altman highlighted its evolution from a simple pastime to a significant community platform. He invested $50 million in Reddit’s Series B round in 2014, having been a daily user of the service for nearly a decade prior. His continued investments, including $50 million in the Series E round in 2021, have yielded significant returns, with a 45% increase in value noted on his initial 2021 investment.
Altman’s shares in Reddit’s Class A and Class B stock are spread across five entities, surpassing even Reddit’s CEO Steve Huffman in ownership, according to recent filings. Although Reddit has not disclosed the number of Class A shares it will offer in the IPO, Altman’s significant stake underscores his substantial influence in the company’s trajectory.
Having served on Reddit’s board until 2021, Altman’s departure was met with gratitude from Huffman, who praised his invaluable support and counsel. Reddit announced Altman’s resignation in January 2022, acknowledging his significant impact on the company’s growth and development.
In addition to Altman’s windfall, Reddit plans to offer shares to some of its users, moderators, or “Redditors,” as part of the IPO. Altman’s continued involvement and the potential for broader community ownership signal an exciting chapter for Reddit as it enters the public market.
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