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Sam Altman, CEO of OpenAI, at the Allen & Company Sun Valley Conference on July 9, 2024 in Sun Valley, Idaho.

David A. Grogan | CNBC

Sam Altman, the controversial CEO of OpenAI, has a stake in social media company Reddit that’s worth over $1 billion as of post-market trading on Tuesday.

Altman controls roughly 12.2 million shares of Reddit, a company he first invested in over a decade ago. Reddit shares soared about 20% in extended trading after the compny reported better-than-expected quarterly results and issued an optimistic forecast.

At Reddit’s after-hours share price of $98, Altman’s holdings are valued at about $1.2 billion.

Prior to the surging popularity of OpenAI’s ChatGPT, which was released to the public in late 2022, Altman was best known as a startup investor and as the former president of Y Combinator. Altman’s investment portfolio includes past or present stakes in AirbnbUberInstacart, Stripe and Asana, but one of his top bets was Reddit. Altman was on the social media platform’s board until around January 2022, when the company said he had recently stepped down.

Reddit went public in March at $34 a share.

Altman is among the company’s largest shareholders, behind only Condé Nast parent Advance Magazine Publishers, Chinese internet giant Tencent and Fidelity. In 2021, as the tech market was booming, Altman invested a combined $60 million in Reddit over two funding rounds, according to the company’s IPO prospectus from earlier this year.

Top shareholders were forbidden from selling Reddit shares for six months during the “lockup period,” which expired in September. There’s no indication that Altman has sold any of his stock.

Altman didn’t immediately respond to a request for comment.

Earlier this month, OpenAI closed its latest funding round at a valuation of $157 billion, including the $6.6 billion the company raised from an extensive roster of investment firms and tech companies. The company expects about $5 billion in losses on $3.7 billion in revenue this year, CNBC confirmed in September.

Altman told employees last month that there are no plans for him to receive a “giant equity stake” in the company.

In March, OpenAI said Altman was rejoining the company’s board following the conclusion of an internal investigation by U.S. law firm WilmerHale into the events that led to his sudden ouster (and rapid reinstatement) late last year.

— CNBC’s Ari Levy contributed to this report

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Cognition to buy AI startup Windsurf days after Google poached CEO in $2.4 billion licensing deal

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Cognition to buy AI startup Windsurf days after Google poached CEO in .4 billion licensing deal

In this photo illustration, a man seen holding a smartphone with the logo of US artificial intelligence company Cognition AI Inc. in front of website.

Timon Schneider | SOPA Images | Sipa USA | AP

Artificial intelligence startup Cognition announced it’s acquiring Windsurf, the AI coding company that lost its CEO and several other senior employees to Google just days earlier.

Cognition said on Monday that it will purchase Windsurf’s intellectual property, product, trademark, brand and talent, but didn’t disclose terms of the deal. It’s the latest development in an AI talent war, as companies like Meta, Google and OpenAI fiercely compete for top engineers and researchers.

OpenAI had been in talks to acquire Windsurf for about $3 billion in April, but the deal fell apart, and Google said on Friday that it hired Windsurf’s co-founder and CEO Varun Mohan. Google is paying $2.4 billion in licensing fees and for compensation, as CNBC previously reported.

“Every new employee of Cognition will be treated the same way as existing employees: with transparency, fairness, and deep respect for their abilities and value,” Cognition CEO Scott Wu wrote in a memo to employees on Monday. “After today, our efforts will be as a united and aligned team. There’s only one boat and we’re all in it together.”

Cognition didn’t immediately respond to CNBC’s request for comment. Windsurf directed CNBC to Cognition.

Cognition is best known for its AI coding agent named Devin, which is designed to help engineers build software faster. As of March, the startup had raised hundreds of millions of dollars at a valuation of close to $4 billion, according to a report from Bloomberg.

Both companies are backed by Peter Thiel’s Founders Fund. Other investors in Windsurf include Greenoaks, Kleiner Perkins and General Catalyst.

“I’m overwhelmed with excitement and optimism, but most of all, gratitude,” Jeff Wang, the interim CEO of Windsurf, wrote in a post on X on Monday. “Trying times reveal character, and I couldn’t be prouder of how every single person at Windsurf showed up these last three days for each other and for our users.”

Wu said that the acquisition ensures all Windsurf employees are “treated with respect and well taken care of in this transaction.” All employees will participate financially in the deal, have vesting cliffs waived for their work to date and receive fully accelerated vesting for their, according to the memo.

“There’s never been a more exciting time to build,” Wu wrote.

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Musk’s xAI faces European scrutiny over Grok’s ‘horrific’ antisemitic posts

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Musk's xAI faces European scrutiny over Grok's 'horrific' antisemitic posts

The Grok logo is being displayed on a smartphone with Xai visible in the background in this photo illustration on April 1, 2024. 

Jonathan Raa | Nurphoto | Getty Images

The European Union on Monday called in representatives from Elon Musk‘s xAI after the company’s social network X, and chatbot Grok, generated and spread anti-semitic hate speech, including praise for Adolf Hitler, last week.

A spokesperson for the European Commission told CNBC via e-mail that a technical meeting will take place on Tuesday.

xAI did not immediately respond to a request for comment.

Sandro Gozi, a member of Italy’s parliament and member of the Renew Europe group, last week urged the Commission to hold a formal inquiry.

“The case raises serious concerns about compliance with the Digital Services Act (DSA) as well as the governance of generative AI in the Union’s digital space,” Gozi wrote.

X was already under a Commission probe for possible violations of the DSA.

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Grok also generated and spread offensive posts about political leaders in Poland and Turkey, including Polish Prime Minister Donald Tusk and Turkish President Recep Erdogan.

Over the weekend, xAI posted a statement apologizing for the hateful content.

“First off, we deeply apologize for the horrific behavior that many experienced. … After careful investigation, we discovered the root cause was an update to a code path upstream of the @grok bot,” the company said in the statement.

Musk and his xAI team launched a new version of Grok Wednesday night amid the backlash. Musk called it “the smartest AI in the world.”

xAI works with other businesses run and largely owned by Musk, including Tesla, the publicly traded automaker, and SpaceX, the U.S. aerospace and defense contractor.

Despite Grok’s recent outburst of hate speech, the U.S. Department of Defense awarded xAI a $200 million contract to develop AI. Anthropic, Google and OpenAI also received AI contracts.

CNBC’s April Roach contributed to this article.

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Meta removes 10 million Facebook profiles in effort to combat spam

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Meta removes 10 million Facebook profiles in effort to combat spam

Meta CEO Mark Zuckerberg looks on before the luncheon on the inauguration day of U.S. President Donald Trump’s second presidential term in Washington on Jan. 20, 2025.

Evelyn Hockstein | Reuters

Meta on Monday said it has removed about 10 million profiles for impersonating large content producers through the first half of 2025 as part of an effort by the company to combat “spammy content.”

The crackdown is part of Meta’s broader effort to make the Facebook feed more relevant and authentic by taking action against and removing accounts that engage in “spammy” behavior, such as content created using artificial intelligence tools.

As part of that initiative, Meta is also rolling out stricter measures to promote original posts from creators, the company said in a blog post.

Facebook also took action against approximately 500,000 accounts that it identified to be engaged in inauthentic behavior and spam. These actions included demoting comments and reducing distribution of content, which are intended to make it harder for these accounts to monetize their posts.

Meta said unoriginal content is when images or videos are reused without crediting the original creator. Meta said it now has technology that will detect duplicate videos and reduce the distribution of that content.

The action against spam and inauthentic content comes as Meta increases its investment in AI, with CEO Mark Zuckerberg on Monday announcing plans to spend “hundreds of billions of dollars” on AI compute infrastructure to bring the company’s first supercluster online next year.

This mandate comes at a time when AI is making it easier to mass-produce content across social media platforms. Other platforms are also taking action to combat the increase of spammy, low-quality content on social media, also known as “AI slop.”

Google’s YouTube announced a change in policy this month that prevents content that is mass-produced or repetitive from being eligible for being awarded revenue.

This announcement sparked confusion on social media, with many users believing this was a reversal on YouTube’s stance on AI content. However, YouTube clarified that the policy change is aimed at curbing unoriginal, spammy and repetitive videos.

“We welcome creators using AI tools to enhance their storytelling, and channels that use AI in their content remain eligible to monetize,” said a spokesperson for YouTube in a blog post to clarify the new policy.

YouTube’s new policy change will take effect on Tuesday.

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