OpenAI CEO Sam Altman Set to Make Fortune as Reddit Goes Public
The highly anticipated debut of social media platform Reddit on the New York Stock Exchange is just around the corner, and it seems that OpenAI CEO Sam Altman is poised to reap the benefits. As per Reddit’s recently filed IPO prospectus, Altman is the third-largest shareholder in the company, holding 4.5% of its Class A shares and 9.3% of Class B shares. This translates to a significant 9.2% voting power ahead of the IPO.
Altman’s association with Reddit dates back to his days as the president of Y Combinator, a tech startup accelerator. During that time, he made an investment in Reddit and even served as its CEO for a brief period in 2014. Since then, Altman has taken the helm at OpenAI, an artificial intelligence research lab backed by Microsoft. OpenAI gained global recognition following the release of ChatGPT in November 2022.
While Reddit was valued at $10 billion during a funding round in 2021, it remains uncertain what valuation the company will target for its upcoming share sale. Reports suggest that Reddit plans to sell nearly 10% of its shares in the IPO. This move is expected to provide Altman with a substantial windfall, considering his long-standing investment in the company.
CNBC estimates that Altman has invested a minimum of $60 million in Reddit over the years. With the company going public, Altman stands to make millions from his investment. The IPO filing also revealed that CEO Steven Huffman holds Class B common stock, which will be issued upon reaching a vesting condition – Reddit achieving a $5 billion market capitalization valuation after the offering.
Interestingly, it appears that Reddit is likely to hit this valuation target right from the start. Founded in 2005 by web developer Steve Huffman and entrepreneur Alexis Ohanian, Reddit has garnered support from prominent investors, including venture capital giant Andreessen Horowitz and Chinese tech giant Tencent Holdings. In fact, Tencent is the second-largest shareholder in the company, holding 11.6% voting power. The Newhouse family’s Advance Magazine Publishers, with a controlling interest of 34%, takes the top spot.
With Reddit’s public debut scheduled for March, the stage is set for Altman to capitalize on his investment. As the company prepares to enter the stock market nearly two decades after its launch, Altman’s foresight and strategic investments are poised to pay off handsomely. As the CEO of OpenAI, Altman continues to make waves in the tech industry, and his success with Reddit further solidifies his position as a key player in the world of artificial intelligence and social media.
In conclusion, Sam Altman’s significant stake in Reddit positions him to make a fortune as the company goes public. With his history of investment and involvement in the company, Altman’s foresight and strategic decisions are set to pay off handsomely. As Reddit prepares for its highly anticipated IPO, all eyes will be on Altman and his potential windfall from this landmark event in the world of social media.
