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Karim did not attend the party and denied that it had occurred, but Chen commented that the idea that You Tube was founded after a dinner party "was probably very strengthened by marketing ideas around creating a story that was very digestible".

You Tube began as a venture capital–funded technology startup, primarily from an .5 million investment by Sequoia Capital and an million investment from Artis Capital Management between November 2005 and April 2006.

As of February 2017 You Tube has faced criticism over aspects of its operations, including its handling of copyrighted content contained within uploaded videos, its recommendation algorithms perpetuating videos that promote conspiracy theories and falsehoods, hosting videos ostensibly targeting children but containing violent and/or sexually suggestive content involving popular characters, videos of minors attracting pedophilic activities in their comment sections, and fluctuating policies on the types of content that is eligible to be monetized with advertising.

Karim said the inspiration for You Tube first came from Janet Jackson's role in the 2004 Super Bowl incident, when her breast was exposed during her performance, and later from the 2004 Indian Ocean tsunami.

Universal Tube has since changed the name of its website to In March 2010, You Tube began free streaming of certain content, including 60 cricket matches of the Indian Premier League.It features a simplified user interface, curated selections of channels featuring age-appropriate content, and parental control features.In October 2015, You Tube announced You Tube Red (now You Tube Premium), a new premium service that would offer ad-free access to all content on the platform (succeeding the Music Key service released the previous year), premium original series and films produced by You Tube personalities, as well as background playback of content on mobile devices.You Tube and selected creators earn advertising revenue from Google Ad Sense, a program which targets ads according to site content and audience.The vast majority of its videos are free to view, but there are exceptions, including subscription-based premium channels, film rentals, as well as You Tube Music and You Tube Premium, subscription services respectively offering premium and ad-free music streaming, and ad-free access to all content, including exclusive content commissioned from notable personalities.

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