It's fascinating that the name 'Linux' was actually chosen by Ari Lemmke, not Linus himself. Details like this highlight the role of community and serendipity in the history of open-source software.
Quoting Wikipedia [1], which provides a bit more details (as of 2025-03-03):
Linus Torvalds had wanted to call his invention Freax, a portmanteau of "free", "freak", and "x" (as an allusion to Unix). During the start of his work on the system, he stored the files under the name "Freax" for about half of a year. Torvalds had already considered the name "Linux", but initially dismissed it as too egotistical. [2]
In order to facilitate development, the files were uploaded to the FTP server (ftp.funet.fi) of FUNET in September 1991. Ari Lemmke at Helsinki University of Technology (HUT), who was one of the volunteer administrators for the FTP server at the time, did not think that "Freax" was a good name. Therefore, he named the project "Linux" on the server without consulting Torvalds. [2] Later, however, Torvalds consented to "Linux".
To demonstrate how the word "Linux" should be pronounced ([ˈliːnɵks]), Torvalds included an audio guide with the kernel source code. [3]
[2] Torvalds, Linus; Diamond, David (2001). Just For Fun - The Story Of An Accidental Revolutionary. New York: HarperBusiness. p. 84. ISBN 0-06-662072-4.