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His personal stock isn’t worth nearly the reported $500 million, but it’s still worth a huge amount.
Business Insider estimates that OpenAI CEO Altman only owns up to about 1.66 million shares of Reddit stock. At the company’s estimated per-share price of $31 to $34, Altman’s Reddit stock could be worth between $51.4 million and $56.4 million.
Neither Reddit nor Altman would comment on the exact number of shares Altman owns.
Mr. Altman has several connections to Reddit. He has served on Reddit’s board, served as its CEO for eight days, and invested in the company through five investment vehicles.
The company’s S-1 states that “an affiliate of Sam Altman” owns 8.7% of the company’s stock, consisting of 789,456 Class A shares and 11,369,103 Class B shares.
News outlets, including Business Insider, quickly declared that Altman owned all of these shares when Reddit filed an early version of its S-1 in late February. However, the truth is much more complex.
The company’s registration statement states that Altman “disclaims any beneficial ownership of these shares except to the extent of their respective financial interests.”
Basically, just because a stock is affiliated with Altman doesn’t mean it belongs to him. Instead, they belong to his various funds, including Hydrazine Capital II, a venture capital fund, and Apollo Projects SPV-B, a special purpose vehicle.
For example, Hydrazine Capital II owns approximately 9.9 million Reddit shares. But according to the fund’s disclosure form, Mr. Altman owns up to 5% of those shares, or about 500,000 shares, with the rest likely belonging to an unidentified limited partner of the fund. .
Applying this method to all of Altman’s investment vehicles associated with Reddit reveals that an individual named Altman owns 1.66 million shares of the company’s stock.
The Reddit connection shows Altman’s long history as an investor.
Although he is best known as the CEO of ChatGPT maker OpenAI, Altman also has access to his own funds and at least one Silicon Valley power broker (Peter Thiel is reportedly a backer of one of his VC funds). The US has poured both of its funds into everything from nuclear fusion to nuclear fusion. The company is a bioscience startup that wants to delay death.
He has made more than 155 investments since 2010, according to PitchBook data, and announced an investment in Reddit in 2014.
“I’ve been a daily reddit user for nine years, which is longer than most services I still use besides Facebook, Google, and Amazon,” Altman wrote on his blog. blog. “I was probably among the first few dozen people to use this site, and I shudder to think of the time I spent there.”