OpenAI is negotiating a deal with Helion, a nuclear-energy startup. Sam Altman invested $375 million in it in 2021|@sama|X
The earnings and investments of the CEO of OpenAI, Sam Altman, are raising questions of conflict of interest, finds the Wall Street Journal.
Altman earns a modest $65,000 annually from the artificial intelligence startup OpenAI, now valued at $86 billion, and owns no stake in it.
But, he is also a prolific investor in Silicon Valley, with a personal investment empire worth at least $2.8 billion, according to the Journal. His investments span over 400 companies, including Stripe, Airbnb and Reddit.
Altman uses a debt line from JPMorgan Chase to invest heavily in startups, a risky strategy given the high failure rate of new companies.
Some of his investments have direct ties to OpenAI, creating potential conflicts of interest.
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OpenAI is negotiating a deal with Helion, a nuclear-energy startup. Altman invested $375 million in it in 2021.
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The AI startup partnered with Reddit to use its data to train AI bots. Altman and other ventures he controls own 7.6% of Reddit, where he also served as the CEO in 2014.
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In 2019, OpenAI signed a letter of intent to buy $51 million worth of AI chips from Altman-backed Rain AI startup, per Wired.
To his part, Altman has recused himself from deals where conflicts might arise. He stepped down from the Reddit board in 2022.
However, his dual role as an investor and CEO has led to complex governance issues. He was temporarily ousted in November due to alleged communication discrepancies with the board but was reinstated after a leadership battle.
While Altman claims he is transparent, OpenAI has established an independent audit committee to review potential conflicts of interest involving directors and officers, said board chairman Bret Taylor.