Neither Sanger nor Wales expected very much from the Nupedia wiki initiative. Wales, anticipating "complete rubbish", hoped that if they were lucky, Wikipedia might yield a couple of rough draft entries for Nupedia. 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, 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.

Chicago Options Associates and Bomis
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