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How Chess.com Became the World’s Biggest Chess Community with CEO Erik Allebest

In a world of infinite gaming and entertainment possibilities, how does a centuries-old game stay so popular? Chess.com co-founder and CEO Erik Allebest joins Sarah Guo to explain how the evolution of technology has kept people coming back to chess, even when machines can beat us at the game. Erik talks about how the desire to build a MySpace-like community for chess led to the purchase of a domain name from a bankruptcy sale back in 2005, and scaled into a community with 10 million daily active users and 250 million total registered members. He also discusses the growth of the cultural relevance of chess, how investments from private equity firms General Atlantic and CVC helped grow and strengthen their platform, and how Chess.com is leveraging AI both within the business itself and to make a better product for its community. Sign up for new podcasts every week. Email feedback to show@no-priors.com Follow us on Twitter: @NoPriorsPod | @Saranormous | @EladGil | @chesscom | @erikallebest Chapters: 00:00 – Cold Open Trailer 01:05 – Erik Allebest Introduction 01:48 – Chess.com Today 02:57 – Buying and Scaling Chess.com 06:29 – Competition and Growth 11:52 – Chess and Cultural Relevance 14:32 – Private Equity Investment 19:31 – Playing Games Amid Evolving Tech 25:09 – Tech, Skill Distribution, and Expertise 28:40 – Chess and Cheating 31:20 – What Makes Chess Special 33:17 – Chess.com Future Vision 34:54 – Founder Advice 36:48 – AGI/ASI Predictions 40:02 – AI Investments at Chess.com 42:13 – How AI May Change Product at Chess.com 43:27 – Poker Rating Algorithms 46:07 – Conclusion

Erik Allebestguest
Aug 13, 202646mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

How Chess.com bootstrapped to $200M and embraced AI thoughtfully

  1. Chess.com scaled from a $56K domain purchase to ~10M daily users and ~$200M+ annual revenue by prioritizing user experience, community, and a sustainable subscription model rather than venture funding.
  2. Chess adoption surged in multiple waves—COVID/Queen’s Gambit, then short-form content and viral events—creating a higher long-term baseline rather than a temporary spike.
  3. Allebest argues superhuman computers didn’t “kill” chess; instead engines and neural nets changed how humans learn, made top-level play more creative again, and enabled better coaching and personalization.
  4. The company took private equity secondary investment (General Atlantic, then CVC) primarily for liquidity and operational maturity, not growth capital, and claims it improved forecasting and execution discipline.
  5. Chess.com is investing in AI across support, analytics, internal knowledge systems, faster development cycles, personalized training/coaching features, anti-cheat defenses, and is applying its “ratings-first” playbook to poker via Gambit.

IDEAS WORTH REMEMBERING

5 ideas

A “niche” can compound into a massive market if adoption waves create a higher baseline.

Allebest describes multiple demand spikes (COVID/Queen’s Gambit, then 2023 youth/schools + viral moments) that fell from peaks but stabilized at much higher levels, shifting Chess.com’s ambition from “surprisingly big” to “why not 1B players?”.

In commoditized domains, UX + community + content can outperform funding advantages.

Because chess isn’t patentable and there are countless apps, Chess.com focused relentlessly on a great in-browser experience, free-to-play access, and community/content as durable differentiators rather than relying on capital or exclusivity.

Bootstrapping can be a strategic choice when the business is profitable and not under Big Tech assault.

Chess.com grew “at the speed of cash,” hiring only as revenue allowed, which Allebest credits for culture and resilience; he notes this path was feasible because the category wasn’t capital-intensive and lacked a dominant platform competitor bearing down.

Private equity can add leverage through operational excellence, not just financial engineering.

He frames General Atlantic and CVC as mission-aligned partners who pushed better forecasting, reporting, and execution rigor, with investments largely secondary (liquidity for existing holders) rather than primary capital for burn-funded growth.

Superhuman AI doesn’t eliminate human competition; it can raise the ceiling and enrich the experience.

Allebest argues early engines made play feel ‘too perfect’ and boring, but neural-net engines introduced unconventional, aggressive ideas that revitalized top-level chess and improved training tools like game review, puzzles, and personalized coaching.

WORDS WORTH SAVING

5 quotes

Basically most of them said, "This is uninvestable. You should get a real job."

— Erik Allebest

We just really kind of grew at the speed of cash.

— Erik Allebest

Humans wanna do human stuff.

— Erik Allebest

You never really lose if you learn.

— Erik Allebest

There's no loot boxes, there's no new skins that dropped, there's no, like, changes to the rules.

— Erik Allebest

Bootstrapped growth and early VC rejectionUser experience as moat in a non-patentable gameCultural moments driving chess demand (COVID, Queen’s Gambit, short-form)Lichess and market structure of chess platformsPrivate equity via secondary transactions and operational maturityAI’s impact on learning, coaching, and product iterationCheating detection and integrity at scaleChess as timeless, low-luck, shared-culture gameExpanding into poker and ratings-based competitive designFounder advice: ignore playbooks, build what you want to exist

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