Sam Altman, CEO of OpenAI, a leading developer of advanced AI chatbot technology, has been identified as a billionaire by Forbes, owing to his extensive portfolio of start-ups and company investments. Interestingly, despite co-founding OpenAI with Elon Musk in 2015, he does not have a financial stake in the company, which currently boasts a valuation in excess of $80 billion.
This marks the first time Altman has been included in the Forbes World's Richest People list. Earlier, in 2015, he was recognized in Forbes' first-ever 30 Under 30 venture capital list. A Forbes investigation highlighted that Altman's wealth is largely amassed from startup investments in companies backed by the tech start-up accelerator Y Combinator Management, LLC. His investment portfolio includes companies like Reddit, fintech star Stripe, nuclear energy firm Helion, and biotech start-up Retro Biosciences, among others.
Forbes based its estimation of Altman's net worth, believed to be $1 billion, on a comprehensive analysis of regulatory filings, and corroborative inputs from those familiar with his investments. However, it was unable to ascribe a value to his personal collection of technology artifacts such as jet engines and Bronze Age swords.
Reid Hoffman, LinkedIn co-founder and former board director at OpenAI, praised Altman's investment acumen and willingness to take big risks. Hoffman noted that Altman was unique in that he wasn't wary of potential public failures, a fear that often inhibits investors.
Altman's tech journey began at 8 when he learned to dismantle a Macintosh computer. After briefly attending Stanford for computer science, he dropped out to start the location-sharing mobile app Loopt. This venture led him to be part of the first-ever Y Combinator’s cohort in Cambridge, Massachusetts. Here, co-founder and president Paul Graham named Altman as one of the five most interesting startup founders of the last 30 years.
Altman began investing at a young age, and in 2010, he invested in four companies. A year later, he became a partner at YC. In 2012, after selling Loopt for $43 million, he launched a $20 million venture fund, Hydrazine Capital, under the guidance of PayPal co-founder, Peter Thiel. Majority of the fund's capital was invested in YC companies.
Altman succeeded Graham as the head of YC in 2014. During his 5 years tenure as YC president, he established a Continuity fund for further investment in YC companies as they grew, and also provided online courses for budding founders and investors.
However, Altman's investment journey has not always been smooth. In November of last year, he was abruptly removed from his position as CEO of OpenAI by the company's board, who cited issues with his communication practices. This triggered a mass uproar among the staff, with many threatening to resign. Microsoft CEO, Satya Nadella, expressed his confusion over the incident, as he hadn't been given a proper explanation. Following an investigation, Altman was reinstated to his position in March of this year.
