 Bomis created Nupedia as a free online encyclopedia ( with content submitted by experts ) but it had a tedious , slow review process . Wikipedia was initially launched by Bomis to provide content for Nupedia , and was a for @-@ profit venture ( a Bomis subsidiary ) through the end of 2002 . As the costs of Wikipedia rose with its popularity , Bomis ' revenues declined as result of the dot @-@ com crash . Since Wikipedia was a drain on Bomis ' resources , Wales and philosophy graduate student Larry Sanger decided to fund the project as a charity ; Sanger was laid off from Bomis in 2002 . Nupedia content was merged into Wikipedia , and it ceased in 2003 . 
