OpenAI CEO Sam Altman finds himself in a promising position as Reddit unveiled its long-awaited IPO filing on Thursday.
According to CNBC, Altman's journey with the online discussion platform dates back to 2014, when he led Reddit's $50 million Series B funding round. Hence, his continued investment in Reddit over the years has positioned him to benefit significantly from the company's public listing.
SUN VALLEY, IDAHO - JULY 11: CEO of OpenAI Sam Altman speaks to the media as he arrives at the Sun Valley Lodge for the Allen & Company Sun Valley Conference on July 11, 2023 in Sun Valley, Idaho. Every July, some of the world's most wealthy and powerful businesspeople from the media, finance, technology and political spheres converge at the Sun Valley Resort for the exclusive weeklong conference.
Sam Altman's Investment on Reddit
According to CNBC, Sam Altman's investment strategy extends far beyond Reddit, with stakes in various startups, including Asana and Instacart.
His tenure as the president of Y Combinator, a Silicon Valley accelerator, before co-founding OpenAI in 2015 provided him with valuable insights and exposure to emerging companies.
Reflecting on his early involvement with Reddit, Altman described the platform's evolution from a simple pastime to a vibrant community that fosters meaningful connections. His deep-rooted belief in Reddit's potential led him to invest further in the platform, aligning with his vision for fostering community ownership.
It is also worth noting that throughout 2021, Altman continued to demonstrate confidence in Reddit's growth trajectory by injecting additional funds into the company. As Reddit's value surged, so did Altman's initial investment, underscoring the success of his strategic investment decisions.
CNBC reported that he invested $50 million in Reddit's Series E funding, and when the platform raised $512 million, his investment was up by 45% in value. Furthermore, Altman's contributions extended beyond financial support, as he served on Reddit's board until 2021.
His departure was met with gratitude by Reddit CEO Steve Huffman, who acknowledged Altman's invaluable counsel and support over the years. With OpenAI, Altman is focused on advancing the adoption of its services, including the widely used ChatGPT chatbot.
Reddit's IPO filing recognizes the competitive landscape of large language models, highlighting Altman's efforts to position OpenAI as a key player.
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Reddit to Go Public Under the Ticker 'RDDT'
Reddit is going public after submitting its IPO prospectus to the US Securities and Exchange Commission (SEC) on Thursday. The social media company aimed to trade on the New York Stock Exchange under the ticker symbol "RDDT."
Its upcoming market debut, slated for March, signifies the first major tech initial public offering (IPO) in 2024 and the first social media IPO since Pinterest's move to go public in 2019. According to the regulatory filing, Reddit recorded $804 million in annual sales for 2023, a 20% increase from the previous year's $666.7 million.
The company primarily relies on revenue from online advertising through its website and mobile app. The filing also revealed that Altman is one of the biggest shareholders in Reddit.
Related Article: Reddit Files IPO, Soon Going Public-Longtime Users Eligible to Buy Shares
