Sam Altman, the CEO of OpenAI, has been revealed as the third-largest shareholder of Reddit, according to a recent Securities and Exchange Commission (SEC) filing. The filing, made in preparation for Reddit’s upcoming IPO, disclosed that Altman owns an 8.7% stake in the popular online social forum. This news comes as a surprise, as the extent of Altman’s ownership was previously unknown.
Altman’s significant stake in Reddit makes him the third-largest shareholder, behind Advance (owned by the Newhouse family) with a 30% stake and Chinese company Tencent with an 11% stake. Altman’s involvement with Reddit goes beyond being a shareholder; he also served on the company’s board for seven years until 2022.
Reddit’s decision to go public marks a significant milestone for the social media industry, as it is the first social media company to submit an initial public offering since Pinterest in 2019. Additionally, Reddit is the first major tech company to file for an IPO in 2024. Despite reporting a 20% increase in revenue last year compared to the previous year, Reddit has struggled to turn a profit, according to Bloomberg.
However, Reddit may have found a potential revenue source in the field of artificial intelligence (AI). The company recently announced a data licensing agreement with Google, which will pay Reddit $60 million annually for access to its content. This agreement highlights the value of Reddit’s vast collection of real-time and relevant human conversations, which can be utilized for purposes such as search, AI training, and research. It is worth noting that Reddit does not currently have a data licensing deal with Altman’s OpenAI.
While this partnership with AI companies presents opportunities for revenue generation, it has faced criticism from some Reddit users. Concerns have been raised about profiting off users’ data without their consent. Similar controversies have arisen in other social media platforms, such as Elon Musk’s AI chatbot, Grok, which is trained on user data.
In conclusion, Sam Altman’s significant ownership stake in Reddit has been revealed through a recent SEC filing. As the third-largest shareholder, Altman’s involvement with Reddit extends beyond his financial investment, as he previously served on the company’s board. Reddit’s decision to go public and its data licensing agreement with Google indicate potential avenues for revenue growth, particularly in the field of AI. However, the company faces criticism from users who are concerned about the use of their data by AI companies. As Reddit prepares for its IPO, it will be interesting to see how these developments shape its future trajectory in the social media landscape.
