What Is a Dear Sam Letter
A Dear Sam letter is a formal investor letter addressed to a company's CEO, typically Sam Altman of OpenAI, requesting specific disclosures or actions. These letters often follow public filings, earnings reports, or major corporate announcements where shareholders seek clarity on strategy, governance, or financial performance. The format mirrors traditional shareholder correspondence but is optimized for direct CEO engagement and public visibility.
The practice gained prominence as activist and institutional investors increasingly use open letters to influence corporate behavior. Unlike private emails, Dear Sam letters are often published on investor platforms or shared via social media to pressure companies into transparency. They typically include specific questions about capital allocation, risk management, and long-term strategic priorities.
Why Investors Write Dear Sam Letters
Investors write Dear Sam letters to address governance concerns, request updates on artificial intelligence safety protocols, or seek clarification on financial metrics such as revenue growth and valuation milestones. These letters serve as public records of shareholder sentiment and can trigger formal responses from corporate boards or investor relations teams.
According to recent corporate governance research, public letters to CEOs increase the likelihood of formal responses by over 60% compared to private communications. Companies like Tesla and SpaceX have faced similar shareholder pressure through open letters, leading to updated disclosure practices and board-level reviews. For example, investor letters regarding AI safety at OpenAI have prompted discussions about alignment and risk mitigation strategies, as detailed in public statements and regulatory filings via SEC EDGAR.
How to Structure an Effective Dear Sam Letter
An effective Dear Sam letter follows a clear structure: a concise introduction stating the sender's position and purpose, a body with specific data-driven questions or requests, and a closing that outlines desired outcomes. The letter should reference recent public disclosures, financial reports, or news events to establish context and demonstrate informed engagement.
Key elements include identifying the shareholder's stake, citing specific metrics such as revenue growth or user adoption rates, and proposing actionable next steps. For instance, a letter might reference OpenAI's latest valuation or product milestones, linking to official announcements or earnings materials on OpenAI's official blog. The tone should remain professional and factual, avoiding speculative claims or emotional language to maximize credibility and response rates.