The Billion-Dollar Bet: Sam Altman’s Reddit Stake Soars
In a stunning turn of events, Sam Altman, the CEO of OpenAI, has seen his stake in social media giant Reddit skyrocket to over $1 billion. This comes after Reddit reported better-than-expected quarterly results and issued an optimistic forecast, sending its shares soaring 20% in extended trading.
A Decade-Long Investment
Altman’s investment in Reddit dates back over a decade, with the CEO controlling approximately 12.2 million shares of the company. At Reddit’s after-hours share price of $98, Altman’s holdings are valued at a staggering $1.2 billion. This makes him one of the company’s largest shareholders, behind only Condé Nast parent Advance Magazine Publishers, Chinese internet giant Tencent, and Fidelity.
A Portfolio of Winners
Altman’s investment portfolio is a veritable who’s who of tech giants, including past or present stakes in Airbnb, Uber, Instacart, Stripe, and Asana. However, his bet on Reddit has proven to be one of his most lucrative investments to date. In 2021, Altman invested a combined $60 million in Reddit over two funding rounds, a move that has clearly paid off.
Lockup Period Expires
Top shareholders, including Altman, were forbidden from selling Reddit shares for six months during the “lockup period,” which expired in September. While there’s no indication that Altman has sold any of his stock, the expiration of the lockup period has sparked speculation about the potential for insider sales.
OpenAI’s Funding Round
Earlier this month, OpenAI closed its latest funding round at a valuation of $157 billion, including the $6.6 billion the company raised from an extensive roster of investment firms and tech companies. Despite expecting significant losses this year, OpenAI remains one of the most highly valued private companies in the world.
Altman’s Future Plans
In a recent statement, Altman told employees that there are no plans for him to receive a “giant equity stake” in OpenAI. However, his role as CEO and his significant stake in Reddit have cemented his position as one of the most influential figures in the tech industry.
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