Reddit Co-Founder Eyes Japan-US Chip Alliance For Investment: 'This Is Going To Be A Gateway To Asia'

In a strategic move, Alexis Ohanian, the co-founder of Reddit, is setting his sights on the burgeoning U.S.-Japan chip sector through his venture capital firm Seven Seven Six.

What Happened: Ohanian is targeting tech investments in Japan, with a keen focus on reinforcing the U.S.-Japan chip alliance, Nikkei Asia reported on Thursday.

Ohanian’s venture capital firm Seven Seven Six, which boasts assets of $970 million, is on the hunt for early-stage startups, with a particular interest in those crafting AI processors. Ohanian predicts a burgeoning U.S.-Japan partnership over the coming decade, despite global trends leaning away from globalization.

“It just behooves us to have the connections, to have the relationships [with Japan], because this is going to be a gateway to Asia. I think for sure, [Japan is] one of America’s closest allies and partners,” he said.

At an event hosted by Japanese fund X&KSK, Ohanian highlighted Japan’s strategic position as Asia’s portal and a pivotal ally to the U.S. This interest aligns with the U.S. strategy to encourage allies to reduce semiconductor supply chain dependencies on China.

Ohanian, who has had multiple tenures at Reddit, also touched on the company’s recent IPO, which saw its shares soar on debut. He noted Sam Altman, CEO of OpenAI, holds a substantial stake in Reddit, hinting at Altman’s potential use of Reddit’s data to refine AI tools such as ChatGPT.

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Why It Matters: The strategic significance of the U.S.-Japan chip alliance is underscored by the increasing presence of Taiwanese chip firms in Japan. Companies like Alchip Techs and Taiwan Semiconductor have been shifting operations to Japan in response to the U.S. efforts to limit China’s semiconductor advancements.

Further emphasizing this trend, TSMC is contemplating an expansion of its advanced chip packaging facilities in Japan, a move that could significantly influence the global semiconductor landscape.

In June, Japan revealed its ambitious goal to triple its domestic semiconductor sales by 2030.

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