Sam Altman’s Reddit stake now worth over $1 billion after post-earnings pop

Sam Altman, the arguable CEO of OpenAI, has a stake in social media corporate Reddit that’s importance over $1 billion as of post-market buying and selling on Tuesday.

Altman controls kind of 12.2 million stocks of Reddit, an organization he first invested in over a decade in the past. Reddit stocks soared about 20% in prolonged buying and selling later the compny reported better-than-expected quarterly effects and issued an positive forecast.

At Reddit’s after-hours proportion value of $98, Altman’s holdings are valued at about $1.2 billion.

Previous to the surging acclaim for OpenAI’s ChatGPT, which was once exempted to the people in past due 2022, Altman was once highest referred to as a startup investor and because the former president of Y Combinator. Altman’s funding portfolio comprises year or provide stakes in Airbnb, Uber, Instacart, Stripe and Asana, however one in every of his lead bets was once Reddit. Altman was once at the social media platform’s board till round January 2022, when the corporate stated he had not too long ago stepped ill.

Reddit went people in March at $34 a proportion.

Altman is likely one of the corporate’s greatest shareholders, in the back of simplest Condé Nast mother or father Exit Book Publishers, Chinese language web immense Tencent and Constancy. In 2021, because the tech marketplace was once booming, Altman invested a mixed $60 million in Reddit over two investment rounds, in step with the corporate’s IPO prospectus from previous this age.

Govern shareholders had been prohibited from promoting Reddit stocks for 6 months all through the “lockup period,” which expired in September. There’s negative indication that Altman has offered any of his reserve.

Altman didn’t in an instant reply to a request for remark.

Previous this age, OpenAI closed its original investment spherical at a valuation of $157 billion, together with the $6.6 billion the corporate raised from an in depth roster of funding companies and tech firms. The corporate expects about $5 billion in losses on $3.7 billion in earnings this age, GWN showed in September.

Altman advised staff endmost age that there are not any plans for him to obtain a “giant equity stake” within the corporate.

In March, OpenAI stated Altman was once rejoining the corporate’s board following the realization of an inside investigation through U.S. legislation company WilmerHale into the occasions that ended in his unexpected ouster (and speedy reinstatement) past due endmost age.

— GWN’s Ari Levy contributed to this file

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