Growing up in Canada, David Cheriton initially intended to pursue music but ultimately turned to his passion for logic and numbers.
After receiving his bachelor's degree from the University of British Columbia in 1973, he went on to earn his master's and doctoral degrees in computer science from the University of Waterloo, where he quickly established himself as a pioneer in distributed computing.
His move to teach at Stanford University cemented his career in Silicon Valley. There, he not only developed high-performance systems but also mentored generations of students, including Larry Page and Sergey Brin, the future founders of Google.
Cheriton's success stems not only from luck but also from his ability to recognize true technological breakthroughs. He didn't chase market trends like social media but focused on innovations that brought measurable value to life. "I believe if you provide real value to the world, the market will reward you," he affirmed.
His fateful investment took place in 1998, right on his porch. When two graduate students, Larry Page and Sergey Brin, approached him for advice, he and his colleague Andy Bechtolsheim quickly recognized the potential of the PageRank algorithm. He decided to write them a check for 100,000 USD. This investment later yielded him over one billion USD in Google stock.
Before and after Google, Cheriton invested in dozens of companies. He co-founded Granite Systems (sold to Cisco for 220 million USD), Kealia (sold to Sun Microsystems for 90 million USD), and Arista Networks (successful IPO in 2014).
Siddharth Batra, a former student who received funding from Cheriton, commented, "Technologists find it easy to connect with David because he truly understands the issues and doesn't look at you with the blank stare of a venture capitalist."
 |
Stanford University professor, billionaire David Cheriton. Photo: theglobeandmail |
Stanford University professor, billionaire David Cheriton. Photo: theglobeandmail
A billionaire's frugal philosophy
With an estimated net worth of 19.8 billion USD in 2025, David Cheriton maintains a lifestyle that contrasts sharply with the extravagance often associated with billionaires.
He still drives his 1986 Volkswagen Vanagon, lives in the same Palo Alto home he's owned for 40 years, and cuts his own hair. "It's not that I can't afford a haircut. It's just easier and less time-consuming to do it myself," Cheriton explained.
The one rare splurge he admits to is buying a 2012 Honda Odyssey "for the kids." The professor also calls himself "naughty" for occasionally windsurfing in Maui.
When asked about his only expensive passion, he replied: Start-up companies.
"I feel very fortunate in investing, but I still have the brain of a frugal person when it comes to spending money," he said.
Legacy
Instead of indulging in a lavish lifestyle, David Cheriton chooses to reinvest his wealth in the educational institutions that shaped his career. He donated 25 million USD to the University of Waterloo, leading the university to rename its School of Computer Science after him.
The University of British Columbia and Stanford have also received substantial donations for scholarships and research funding.
Despite his private life, avoiding social media and the spotlight, David Cheriton's journey remains an inspiration to entrepreneurs worldwide. His story serves as a reminder that groundbreaking success often starts with a simple idea, nurtured by curiosity and a commitment to knowledge.
Minh Phuong (According to Forbes, LinkedIn)
