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OpenAI CEO Sam Altman’s stake in Reddit rose to more than $613 million on Thursday after the social network went public in a successful IPO. Shares of Reddit closed at $50.44 on the New York Stock Exchange (NYSE), up 48%.
Altman, 38, is one of Reddit’s largest shareholders and controls 7.6% of the company’s outstanding shares after the IPO, according to company filings. Altman is one of Reddit’s major shareholders, along with Advance Magazine Publishers and Chinese internet giant Tencent.
Although Altman’s organization is huge on Reddit, insiders like him still face a six-month blackout period in which they are banned from selling their shares. Altman declined to comment for this story.
Before joining OpenAI in 2015, Altman was a well-known startup entrepreneur and president of Y Combinator, which he left in 2019. Its portfolio includes investments in major technology companies such as Airbnb, Uber, Instacart, Stripe and Asana. .
Reddit was one of Altman’s best investments. He led the company’s $50 million Series B financing round in 2014, voicing his admiration for the platform he’s used for nine years. Altman credits Reddit with transforming it from a simple game into a major digital forum.
During the tech boom in 2021, Altman poured a total of $60 million into Reddit through two funding rounds. While Thursday’s trading performance was significant for Reddit, its current valuation is still below its private sector peak.
Altman’s participation in Reddit has diminished his finances, especially during controversies surrounding OpenAI’s leadership. Altman was briefly fired from OpenAI’s board last year, but was reinstated amid outcry from employees and investors.
Despite his financial success on Reddit, Altman reiterated that he is motivated by more than just making money. He testified before US senators last May that his commitment to OpenAI stems not from financial support, but from his passion for his work.
Altman’s journey with Reddit exemplifies the profitable potential of early-stage investments and highlights the power of the tech industry and the opportunities it offers businesspeople like himself.