OpenAI billionaire Sam Altman has invested in these four tech stocks. What is the best buy now?

By | March 31, 2024

There may not be a more important business leader today than Sam Altman, CEO of OpenAI.

Altman’s company kicked off the artificial intelligence (AI) boom with the launch of ChatGPT in November 2022, and has remained a leader in generative artificial intelligence ever since.

It has received an estimated $13 billion in investments Microsoft and entered into a close partnership with the technology giant, which powers AI on products such as Azure, Github and Office. OpenAI also continued to impress with its own products such as Dall-E, a text-to-image generator, and Sora, a text-to-video generator, in addition to ChatGPT.

Before becoming CEO of OpenAI, Altman ran Y Combinator, the Silicon Valley startup incubator, and has made a number of successful investments in startups through various funds that helped him become a billionaire. Keep reading to see four stocks Altman has invested in.

An investor sitting at a table looking at different screens.

Image source: Getty Images.

1.Reddit

Probably Altman’s best-known investment Reddit (NYSE:RDDT). The social media company revealed that Altman was a key investor in the paperwork for its initial public offering (IPO). His stake was valued at $600 million after Reddit’s post-IPO pop.

Altman knows Reddit well. He previously served on the company’s board of directors and even served as CEO for eight days. When he announced his investment in Reddit in 2014, he also said that he had been a daily Reddit user for the past nine years and had met Reddit’s founders at Y Combinator.

OpenAI also used Reddit’s content to train its AI models, and Reddit has sold itself on its AI potential as it believes it has a competitive advantage in AI training data.

Altman clearly knows the company well and so far his investment has paid off.

2. Airbnb

Altman is good friends with Airbnb (NASDAQ:ABNB) CEO Brian Chesky. The two have consulted on various initiatives in the past, and Chesky defended Altman when he was briefly fired as CEO of OpenAI.

Altman invested $100,000 in Airbnb in 2008, when the company was still in its infancy for short-term rentals.

It’s unclear what the current status of Altman’s investment is, but it has paid off handsomely for the OpenAI CEO, even if he has already sold it. Airbnb continues to grow revenue and generate ample operating margin, a sign of its competitive advantage.

Today, Airbnb has a market capitalization of $106.8 billion and is the clear leader in its market.

3. Uber

Altman was also an early investor in it Uber (NYSE:UBER)putting $100,000 into the ride-sharing app and recognizing the potential for an app-based transportation marketplace.

In a 2014 blog post, Altman argued that Uber was undervalued because it often offers a more affordable alternative to car ownership.

He also uses Uber often, showing that he is a fan of both the products and the company.

Like Airbnb, the investment in Uber paid off in the early days. The company now has a market capitalization of $162 billion and dominates the global ridesharing industry.

4. Asana

It is clear that Altman is a fan of marketplaces like Airbnb and Uber, and that he also invests in them Instacart And DoorDashbut the OpenAI chief has made a few investments in software companies like Asana (NYSE: ASAN)specialized in collaboration and project management tools.

Altman was the lead investor in Asana’s $50 million Series C round in March 2016 and also participated in the subsequent $75 million investment round in January 2018.

At the time of his first investment, Altman argued that Asana solved many of the communication problems in business, such as providing clear tasks and goals and taking clear and frequent measurements. He also predicted that Asana could one day vastly increase the productivity of hundreds of millions of people around the world.

Asana has been a disappointment as a publicly traded company thus far, now trading below its IPO price of $27.

Which Altman share is the best buy now?

Of the four stocks above, Airbnb appears to be the best choice for long-term returns. The company continues to achieve steady growth in its core travel businesses. Margins are strong and growing, and the travel specialist has responded to customer complaints about things like cleaning costs and chore lists to make the platform stronger.

Airbnb CEO Brian Chesky has also teased new products and said the company would expand beyond its core business, which could open Airbnb up to new revenue streams.

Uber has also made an impressive comeback over the past two years, benefiting from cost cuts and the reopening of the economy.

Asana is still unprofitable and its shares have underperformed, and Reddit could be overheating after a promising IPO.

Even the CEO of OpenAI can’t always be right, but he saw the promise of new marketplaces like Airbnb and Uber over a decade ago. Today they remain excellent companies.

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Jeremy Bowman has positions at Airbnb. The Motley Fool holds positions in and recommends Airbnb, Asana, DoorDash, and Uber Technologies. The Motley Fool has a disclosure policy.

OpenAI billionaire Sam Altman has invested in these four tech stocks. What is the best buy now? was originally published by The Motley Fool

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