Following Reddit’s IPO debut, OpenAI CEO Sam Altman’s stake in the social media giant surged by $200 million, reaching over $613 million. Reddit’s shares experienced a staggering 48% increase in New York Stock Exchange trading, closing at $50.44. As one of the largest Reddit shareholders, Altman now controls 7.6% of outstanding shares, according to the company’s prospectus, placing him behind only Condé Nast parent Advance Magazine Publishers and Chinese internet giant Tencent. However, Altman faces a restriction from selling Reddit shares for six months during the lockup period.
Sam Altman’s Diverse Investment Portfolio
Prior to his involvement with OpenAI, Sam Altman was renowned as a startup investor and served as the president of Y Combinator until 2019. His investment portfolio boasts stakes in major companies like Airbnb, Uber, Instacart, Stripe, and Asana. Notably, Altman’s significant investment in Reddit dates back to 2014 when he led the company’s $50 million Series B funding round. Despite stepping down from the company board in January 2022, Altman remains deeply involved with Reddit, having invested a combined $60 million in the platform over two financing rounds in 2021.
Altman’s Reluctance Towards Profiting
Altman’s substantial gains from his Reddit investments offer a buffer amid controversies surrounding his tenure at OpenAI. Last year, he faced a brief dismissal from the OpenAI board due to concerns about his leadership, only to be reinstated shortly after amid pressure from employees and investors. Despite his financial success, Altman has consistently emphasized his commitment to OpenAI for reasons beyond monetary gain. In a hearing before US senators last May, Altman asserted that he’s motivated by passion rather than financial incentives, revealing his modest compensation of about $73,500 in 2022. “I’m doing this because I love it,” Altman affirmed, emphasising his dedication to OpenAI’s mission.
