Nearly a decade ago, a pivotal conversation between two tech titans set the stage for one of the most consequential decisions in the AI boom. Reddit co-founder Alexis Ohanian recently revealed on the “Brew Markets” podcast that Sam Altman, then spearheading a nascent nonprofit AI venture, approached Reddit with a bold request: unrestricted access to scrape the platform’s vast trove of user-generated content. Ohanian, speaking candidly, admitted he had an instinctive aversion to the idea, sensing something off about Altman’s pitch.

According to Ohanian, the exchange occurred between 2015 and 2016, when Altman was fresh off his role at Y Combinator and gearing up to launch what would become OpenAI. Altman framed the request as essential for a “long-shot” nonprofit aimed at advancing artificial intelligence for humanity’s benefit. Yet Ohanian pushed back internally, arguing against handing over Reddit’s data goldmine. “I really felt in my bones… we shouldn’t do this,” Ohanian recounted on the podcast, as reported by Business Insider.

A Decade-Old Debate Resurfaces

Despite Ohanian’s reservations, Reddit’s team ultimately greenlit the data access, a decision that Ohanian now reflects on with a mix of hindsight and lessons learned. He described Altman’s approach as “cunning,” noting how the OpenAI CEO positioned the nonprofit as a low-risk entity unlikely to succeed. “He’s like, ‘It’s such a long shot, and he needs our data,'” Ohanian said, per the podcast transcript highlighted in Slashdot. This early data infusion likely fueled OpenAI’s foundational models, contributing to breakthroughs like GPT.

Fast-forward to today, and the irony is stark. OpenAI, now a for-profit juggernaut valued in the hundreds of billions, has inked a formal $60 million annual data deal with Reddit in 2024, granting access to real-time content for AI training. This partnership, announced amid Reddit’s IPO preparations, underscores how data has become the lifeblood of AI development. Posts on X, including from users like Mario Nawfal, amplify Ohanian’s regret: “Reddit co-founder Alexis Ohanian says Sam Altman asked to scrape Reddit’s data nearly a decade ago for his ‘nonprofit’ project that became OpenAI.”

The Evolution of OpenAI’s Data Hunger

Altman’s trajectory from nonprofit visionary to AI powerhouse is well-documented. Founded in 2015 as a nonprofit research lab, OpenAI shifted to a capped-profit model in 2019 to attract capital, a move that raised eyebrows but enabled rapid scaling. Recent reports from TechCrunch reveal OpenAI’s staggering growth: $20 billion in annual recurring revenue projected for 2025, bolstered by massive data center commitments totaling $1.4 trillion.

Reddit’s data, rich with diverse human conversations, proved invaluable. Ohanian’s initial hesitation stemmed from a gut feeling about Altman’s ambitions. “Sam’s cunning in the way he pitched it… I lost the argument internally,” Ohanian admitted on “Brew Markets,” as covered by Inkl. This anecdote highlights the ethical quandaries of data sharing in AI’s early days, when platforms like Reddit were gatekeepers to authentic user content.

Reddit’s Data as AI Fuel

Reddit, co-founded by Ohanian, Steve Huffman, and Aaron Swartz in 2005, has long been a treasure trove for machine learning. Its subreddits offer unstructured data on everything from niche hobbies to global events, making it prime for training language models. By 2015, as AI research intensified, requests like Altman’s became common. Yet Ohanian’s wariness foreshadowed broader industry debates on data privacy and monetization.

In a twist, Altman himself holds a significant stake in Reddit—about 8.7% as of its 2024 IPO filing, per Bloomberg. This overlap adds layers to the narrative, with X posts noting potential conflicts: one user highlighted OpenAI’s $75 million annual payment to Reddit, questioning Altman’s dual roles. Ohanian, who stepped down from Reddit’s board in 2020, now invests in startups through his firm Seven Seven Six, often reflecting on past decisions.

Broader Implications for AI and Data Ethics

The episode ties into larger conversations about the ‘dead internet theory,’ which Ohanian and Altman have both endorsed. In recent interviews, Ohanian warned that bots and AI-generated content are eroding online authenticity, as reported by The Times of India. “So much of the internet is dead,” Ohanian stated on a podcast, predicting a shift toward “verifiably human” platforms.

Altman echoes this, forecasting that AI could “destroy the web within 3 years,” per Fortune. Their shared concerns underscore how early data deals like Reddit’s shaped today’s AI landscape, where companies scramble for high-quality training data amid scraping bans and lawsuits.

Lessons from a Tech Gut Instinct

Ohanian’s story serves as a cautionary tale for tech leaders. “This is a great lesson for founders: trust your gut,” he said on “Brew Markets.” Reddit’s current CEO Steve Huffman has capitalized on data assets, striking deals with Google and OpenAI worth hundreds of millions. Yet Ohanian’s reflection prompts questions: What if Reddit had denied Altman? Would OpenAI’s path have diverged?

Industry insiders point to this as emblematic of AI’s Wild West era. Posts on X, such as from Brew Markets itself, tease the podcast clip: “Reddit co-founder Alexis Ohanian was approached by Sam Altman almost ten years ago – when Altman wanted to scrape Reddit’s data for his nonprofit startup… That would turn into the behemoth that is OpenAI.” As AI evolves, such hindsight offers valuable insights into the human elements driving tech’s biggest bets.

The Ongoing Data Arms Race

Today, OpenAI’s partnerships extend far beyond Reddit. Recent news from The Motley Fool details a $38 billion cloud deal with Amazon Web Services, part of Altman’s aggressive expansion. Projections from Parameter suggest OpenAI could hit hundreds of billions in revenue by 2030, fueled by data-driven innovations.

Ohanian, meanwhile, advocates for human-centric tech. In a Reddit thread on r/Futurology, users discuss his views: “Reddit cofounder Alexis Ohanian says ‘much of the internet is now dead’,” garnering thousands of votes, as noted in web searches. This dialogue reflects growing unease about AI’s impact on online ecosystems, with Ohanian’s early intuition proving prescient.

Navigating AI’s Future Landscape

As AI companies like OpenAI continue to amass data, regulatory scrutiny intensifies. The EU’s AI Act and U.S. proposals aim to govern data usage, potentially reshaping access norms. Ohanian’s anecdote, amplified across platforms like X and news outlets, highlights the personal judgments that underpin billion-dollar industries.

Ultimately, the Reddit-OpenAI saga illustrates the delicate balance between innovation and caution. With Altman steering OpenAI toward ambitious goals and Ohanian championing authentic digital spaces, their intertwined histories offer a roadmap for the AI era’s ethical challenges.