Sam Altman Secretly Owned Way More Reddit Stock Than We Thought

by MMC
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In preparation for his highly anticipated IPO, The online social forum filed a Form S-1 with the Securities and Exchange Commission on Thursday, detailing the company’s financial background. The filing revealed that Altman, the CEO of OpenAI, owns an 8.7% stake in the company.

Altman was previously known to be an investor in Redditalthough the exact amount he owned has not been disclosed until now – the company must share it now since it intends to make public. And it turns out that he is the third largest shareholder of the social networking site. Altman controls 8.7% of the company’s stock, according to the filing.

Altman also served for seven years on Reddit’s board of directors until 2022.

Reddit is the first social media company to submit an initial public offering since Pinterest in 2019, and it is the first major tech company to file.an IPO in 2024.

Even though the company reported a 20% increase in revenue last year compared to the previous year, it still struggles to turn a profit. according to Bloomberg.

However, Reddit does not currently have a data licensing agreement with OpenAI.

“Reddit’s vast and unparalleled archive of real, timely, and relevant human conversations on literally any topic constitutes an invaluable data set for a variety of purposes, including research, AI training, and research,” wrote the Reddit co-founder Steve Huffman said in a letter attached to Thursday’s newspaper. Filing with the SEC.

“We hope that our data advantage and intellectual property will continue to be a key element in the training of future LLMs,” he wrote, referring to large language models, a type of program used by AI systems like Altman’s ChatGPT.

The idea of ​​working closely with AI companies didn’t go down well with some Reddit users, who criticized the idea of ​​profiting. out of user data without their consent.

Reddit wouldn’t be the only social media company to allow AI companies access to user conversations. Elon Muskthe new AI chatbot from, Grokis trained on user data X.

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