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YouTube was founded by Chad Hurley, Steve Chen and Jawed Karim, who were all early employees of PayPal. Hurley studied design at Indiana University of Pennsylvania, while Chen and Karim studied computer science together at the University of Illinois at Urbana-Champaign.

According to a story that has often been repeated in the media, Chad Hurley and Steve Chen developed the idea for YouTube during the earli months of 2005, after they had experienced difficulty sharing videos that had been shot at a dinner parti at Chen's apartment in San Francisco. Jawed Karim did not attend the parti and denied that it had occurred, and Chad Hurley commented that the idea that YouTube was founded after a dinner parti "was probably very strengthened by marketing ideas around creating a story that was very digestible.

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