Sam Altman's venture firms have invested in over 400 startups, according to a report.
Since early this year, OpenAI CEO Altman has been one of Silicon Valley's most prolific individual investors, with interests worth at least $2.8 billion, per The Wall Street Journal.
OpenAI is worth $86 billion, yet Altman does not hold stock and receives $65,000 each year. According to the Bloomberg Billionaires Index, his enormous investment portfolio, which includes Reddit and Stripe stakes, helped him reach $2 billion this year.
Using his JPMorgan debt line, Altman invested hundreds of millions in private firms. According to a report from Business Insider, some of these firms do business with OpenAI, presenting conflict of interest issues.
After Reddit partnered with the ChatGPT developer, its shares surged more than 10%, boosting Altman's investment by $69 million. OpenAI's COO and independent board of directors authorized the acquisition, according to a blog post.
OpenAI board chairman Bret Taylor said Altman has "consistently" adhered to company policies and "been transparent about his investments."
Former OpenAI Board Member Reveals Why Sam Altman was Fired
Recently, Helen Toner, a former OpenAI board member who supported CEO Sam Altman's firing in November, revealed the events leading up to his termination.
Toner reported on a podcast the release of ChatGPT in November 2022, wherein the board discovered the launch on Twitter without prior notice. Toner also disclosed that Altman did not tell the board about his OpenAI startup fund ownership.
The board restored Altman as CEO less than a week after his departure, but Toner's comments on "The TED AI Show" podcast explain why. According to CNBC, she noted that the tech firm's nonprofit board was "set up explicitly" to ensure OpenAI's public good mission remains a priority "over profits, investor interests, and other things."
The former OpenAI board member said Altman withheld information, misrepresented corporate events, and occasionally lied to the board, making it impossible for the board to execute its duty. Toner repeatedly accused Altman of providing "inaccurate information" regarding the limited number of "formal safety processes" OpenAI has established.
Toner said the board was addressing these concerns. Two executives told the board about their unpleasant experiences with Altman in October, a month before his ouster. These chats documented harmful interactions and mistruths with screenshots.
Justice Department Looks Into OpenAI
Separately, the US Department of Justice is investigating key AI companies, including OpenAI, for antitrust offenses.
TechTimes previously reported that DOJ antitrust chief Assistant Attorney General Jonathan Kanter warned at a Stanford University conference on May 30. Kanter's comments indicate growing regulatory scrutiny of AI corporations and the artists they pay to train AI models.
Moreover, Kanter warned AI businesses that failing to adequately reward artists, performers, and other creators might lead to governmental action. Kanter emphasized to AI researchers, executives, and government leaders the importance of compensating creators.
The warning, given at a forum on the economic effect of generative AI systems like ChatGPT and the application of antitrust laws to them, raised worries about AI businesses exploiting creative works. Kanter questioned the motivations of creators who fear that AI technologies could steal and utilize their work without payment.
