David Cheriton Net Worth

David Cheriton: The Billionaire Professor Behind Google’s Success

Introduction: The Remarkable Life of David Cheriton

David Cheriton is a name synonymous with early tech investment success and a life lived on his own terms. This Canadian computer scientist, Stanford professor, billionaire, and venture capitalist achieved remarkable success by spotting potential and taking calculated risks. His most famous investment, a $100,000 check written in 1998, helped launch a little search engine known as Google. But Cheriton’s story goes far beyond that single investment. This article delves into the life, career, and lasting impact of David Cheriton, exploring his early life, academic achievements, entrepreneurial ventures, and philanthropic endeavors.

Early Life and Education: From Music to Computer Science

David Ross Cheriton was born on March 29, 1951, in Vancouver, British Columbia. His initial academic pursuits took a different path, as he enrolled at the University of Alberta with the intention of studying music. However, after being rejected by the music department, Cheriton changed his focus. He moved to mathematics, and eventually earned an undergraduate degree from the University of British Columbia in 1973. This shift marked a significant change in direction, setting the stage for his future in the world of computer science.

Academic Career: Shaping the Future of Technology at Stanford

Cheriton’s passion for computer science led him to the University of Waterloo, where he earned a Master of Science and a Ph.D. in computer science, graduating in 1978. Following a three-year stint as an assistant professor at the University of British Columbia, he joined Stanford University, where he would have a profound influence on the field. In the early 1980s, he led the Distributed Systems Group, which developed the “V” microkernel operating system. This innovation had a lasting impact on technological advancements like the Graphical User Interface and the Internet Protocol layer.

During his time at Stanford, Cheriton taught a brilliant Ph.D. student named Andy Bechtolsheim. Bechtolsheim’s hobby project, a workstation computer called “SUN” (for Stanford University Network), would later become the foundation for Sun Microsystems, a company that generated over $1 billion in annual revenue by 1998 before being acquired by Oracle for $7.4 billion. This close association with prominent figures underscores Cheriton’s ability to identify and nurture exceptional talent.

Granite Systems: A Quick Success

In 1995, Andy Bechtolsheim, along with David Cheriton, co-founded an Ethernet networking company named Granite Systems. This venture proved to be a quick success, as Cisco acquired the company just a year later for $220 million. As a 10% owner, Cheriton, the humble college professor, received a pre-tax payout of $22 million. This early success demonstrated Cheriton’s knack for identifying promising opportunities and his ability to translate academic knowledge into real-world business ventures.

The Google Investment: A $200,000 Gamble That Paid Off Billions

The defining moment in David Cheriton’s career came in 1998. That year, Stanford Ph.D. students Larry Page and Sergey Brin pitched their search engine idea, “Google“, to Cheriton and Andy Bechtolsheim on Cheriton’s front porch. After a brief 10-minute pitch, Bechtolsheim famously wrote a check for $100,000 on the spot. Cheriton, equally impressed by the potential, decided to match the investment, writing his own check for $100,000. These two checks, totaling $200,000, proved to be a remarkably prescient investment, eventually earning Cheriton and Bechtolsheim billions as Google became a global phenomenon. This investment cemented his place in history as one of the earliest and most successful investors in the tech industry. This single investment would make him the richest college professor in the world. And, depending on Google’s stock price, he has, at various points in time, been among the 150 richest people in the world.

Photo by Martin Klimek

Other Investments and Arista Networks: Continuing the Entrepreneurial Journey

Even after the remarkable success of the Google investment, Cheriton and Bechtolsheim continued to found and invest in other companies. Cheriton was an early investor in VMware before it was acquired by EMC for $625 million in 2004. He also invested in Aster Data Systems, a data warehouse company acquired in 2011 for $263 million. In 2001, Cheriton and Bechtolsheim teamed up again to create Kealia, a streaming video server eventually acquired by Sun Microsystems in 2004. In 2004, they co-founded Arista Networks, a network technology company that went public in 2014 and currently has a market cap of approximately $30 billion. These further investments highlight Cheriton’s consistent ability to identify and support innovative technologies and entrepreneurs.

Personal Life and Philanthropy: A Billionaire’s Humble Approach

Despite his immense wealth, David Cheriton is known for his frugal lifestyle. When asked about his biggest splurge, he cited buying a Honda Odyssey. This down-to-earth approach to life reflects a humility that stands in contrast to the extravagance often associated with billionaires. Cheriton was married to Iris Fraser from 1980 to 1994, and they had four children together. He has also made significant philanthropic contributions. In November 2005, he donated $25 million to the University of Waterloo, which subsequently renamed its school of computer science the David R. Cheriton School of Computer Science. He has also made substantial donations to the University of British Columbia, further demonstrating his commitment to education and research.

Legacy: The Enduring Impact of David Cheriton

David Cheriton’s legacy extends far beyond his impressive net worth. He is a pioneer in the world of tech investment, a respected academic, and a generous philanthropist. His early recognition of Google’s potential, combined with his other successful ventures, has solidified his place as a visionary investor. Cheriton’s story is one of smart decisions, calculated risks, and a commitment to innovation. He continues to inspire aspiring entrepreneurs and investors. His impact on the tech industry and academia remains significant, shaping the future of computer science and entrepreneurship. David Cheriton’s life serves as an example of how vision, intelligence, and a touch of boldness can lead to extraordinary success and lasting influence.