
Wales was born in Huntsville, Alabama, where he attended Randolph School, a university-preparatory school, then earned bachelor’s and master’s degrees in finance. While in graduate school, he taught at two universities, but left before completing a Ph.D. in order to take a job in finance and later worked as the research director of a Chicago futures and options firm. In 1996, he and two partners founded Bomis, a male-oriented web portal featuring entertainment and adult content. The company would provide the initial funding for the peer-reviewed free encyclopedia Nupedia (2000–2003) and its successor, Wikipedia.
In 2001, with Larry Sanger and others, Wales launched Wikipedia, a free, open content encyclopedia that enjoyed rapid growth and popularity, and as Wikipedia’s public profile grew, he became the project’s promoter and spokesman. He is historically cited as a co-founder of Wikipedia, though he has disputed the "co-" designation, declaring himself the sole founder. Wales serves on the Board of Trustees of the Wikimedia Foundation, the non-profit charitable organization he helped establish to operate Wikipedia, holding its board-appointed "community founder" seat. In 2004, he co-founded Wikia, a for-profit wiki-hosting service.
His role in creating Wikipedia, which has become the world’s largest encyclopedia, prompted Time magazine to name him in its 2006 list of the world’s most influential people.
In 1994, Wales took a job with Chicago Options Associates, a futures and options trading firm in Chicago, Illinois. Wales has described himself as having been addicted to the Internet from an early stage and used to write computer code as a pastime. During his studies in Alabama, he had become an obsessive player of Multi-User Dungeons (MUDs)—a type of virtual role-playing game—and thereby experienced the potential of computer networks to foster large-scale collaborative projects. Inspired by the remarkable initial public offering of Netscape in 1995, and having accumulated capital through "speculating on interest-rate and foreign-currency fluctuations", he decided to leave the realm of financial trading and become an Internet entrepreneur. In 1996, he and two partners founded Bomis, a web portal featuring user-generated webrings and, for a time, erotic photographs. Wales described it as a "guy-oriented search engine" with a market similar to that of Maxim magazine; The Bomis venture did not ultimately turn out to be successful, however.
Though Bomis had struggled to make money, it provided Wales with the funding to pursue his greater passion, an online encyclopedia. While moderating an online discussion group devoted to the philosophy of Objectivism in the early 1990s, Wales had encountered Larry Sanger, a skeptic of the philosophy. The two had engaged in detailed debate on the subject on Wales' list and then on Sanger's, eventually meeting offline to continue the debate and becoming friends. Years later, after deciding to pursue his encyclopedia project and seeking a credentialed academic to lead it, Wales hired Sanger—who at that time was a doctoral student in philosophy at Ohio State University—to be its editor-in-chief, and in March 2000, Nupedia ("the free encyclopedia"), a peer-reviewed, open-content encyclopedia, was launched. The intent behind Nupedia was to have expert-written entries on a variety of topics, and to sell advertising alongside the entries in order to make profit. The project was characterized by an extensive peer-review process designed to make its articles of a quality comparable to that of professional encyclopedias.
“ | The idea was to have thousands of volunteers writing articles for an online encyclopedia in all languages. Initially we found ourselves organizing the work in a very top-down, structured, academic, old-fashioned way. It was no fun for the volunteer writers because we had a lot of academic peer review committees who would criticize articles and give feedback. It was like handing in an essay at grad school, and basically intimidating to participate in. | ” |
In an October 2009 speech, Wales recollects attempting to write a Nupedia article on Nobel Prize-winning economist Robert C. Merton, but being too intimidated to submit his first draft to the prestigious finance professors who were to peer review it, even though he had published a paper on Option Pricing Theory and was comfortable with the subject matter. Wales characterized this as the moment he realized that the Nupedia model was not going to work.
In January 2001, Sanger was introduced to the concept of a wiki by extreme programming enthusiast Ben Kovitz after explaining to Kovitz the slow pace of growth Nupedia endured as a result of its onerous submission process. Kovitz suggested that adopting the wiki model would allow editors to contribute simultaneously and incrementally throughout the project, thus breaking Nupedia's bottleneck. Sanger was excited about the idea, and after he proposed it to Wales, they created the first Nupedia wiki on January 10, 2001. The wiki was initially intended as a collaborative project for the public to write articles that would then be reviewed for publication by Nupedia's expert volunteers. The majority of Nupedia’s experts, however, wanted nothing to do with this project, fearing that mixing amateur content with professionally researched and edited material would compromise the integrity of Nupedia’s information and damage the credibility of the encyclopedia. Thus the wiki project, dubbed "Wikipedia" by Sanger, went live at a separate domain five days after its creation.
Wikipedia
While Sanger saw Wikipedia primarily as a tool to aid Nupedia development, Wales felt that Wikipedia might have the potential to become the truly collaborative, open effort of knowledge building he dreamed of. Initially, neither Sanger nor Wales knew what to expect from the Wikipedia initiative. Wales feared that at worst, it might produce "complete rubbish". To the surprise of Sanger and Wales, within a few days of launching the number of articles on Wikipedia had outgrown that of Nupedia, and a small collective of editors had formed. Many of the early contributors to the site were familiar with the model of the free culture movement, and, like Wales, many of them sympathized with the open-source movement. Wales has said that he was initially so worried with the concept of open editing, where anyone can edit the encyclopedia, that he would awake during the night and monitor what was being added. Nonetheless, the cadre of early editors helped create a robust, self-regulating community that has proven conducive to the growth of the project.
Sanger developed Wikipedia in its early phase and guided the project. The broader idea he ascribes to Wales, remarking in a 2005 memoir for Slashdot that "the idea of an open source, collaborative encyclopedia, open to contribution by ordinary people, was entirely Jimmy's, not mine, and the funding was entirely by Bomis", adding, "the actual development of this encyclopedia was the task he gave me to work on." Sanger worked on and promoted both the Nupedia and Wikipedia projects until Bomis discontinued funding for his position in February 2002; Sanger resigned as editor-in-chief of Nupedia and as "chief organizer" of Wikipedia on March 1 of that year. In the early years, Wales had supplied the financial backing for the project, and entertained the notion of placing advertisements on Wikipedia before costs were reduced with Sanger's departure and plans for a nonprofit foundation were advanced instead.
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