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Reddit’s IPO Signals Potential Windfall for OpenAI CEO Sam Altman

In a highly anticipated move, Reddit has officially filed for its initial public offering (IPO), set to take place on the New York Stock Exchange in March. The filing reveals that Sam Altman, CEO of OpenAI, stands to reap substantial gains from the social media giant’s public debut.

Altman holds the third-largest stake in Reddit, possessing 4.5% of Class A shares and an impressive 9.3% of Class B shares, translating to 9.2% voting power before the IPO. With a history intertwined with Reddit, Altman initially invested in the platform during his tenure as the president of Y Combinator and even served as Reddit’s CEO briefly in 2014.

Having invested at least $60 million in Reddit over the years, Altman’s potential windfall is significant, considering the platform’s expected valuation of nearly $10 billion during its IPO. Altman’s involvement with Reddit adds another chapter to his storied career, now as the head of OpenAI, a Microsoft-backed AI research lab that gained global attention with the release of ChatGPT in November 2022.

Reddit’s IPO marks a unique milestone, as it plans to reserve shares for its active users based on their “karma,” reflecting the platform’s commitment to involving its community in its public offering. This move positions Reddit as the first major social media company to go public since Snapchat in 2017, offering a fresh perspective in an IPO market currently experiencing a downturn.

As the platform looks to further monetize through advertising, expand e-commerce offerings, and license data for AI development, Reddit’s public debut promises to be a groundbreaking event with potential financial gains for its stakeholders, including Sam Altman.