OpenAI pursues merger with Google-backed Anthropic as Altman joins Microsoft
What's the story
OpenAI's Board of Directors reached out to Dario Amodei, co-founder and CEO of Anthropic, a competing large-language model developer, to discuss a possible merger between the two companies, according to The Information.
This move comes shortly after Sam Altman joined Microsoft after he was fired as OpenAI's CEO by a four-member board last week.
The merger is also an attempt by OpenAI to convince Amodei to step in as the new CEO.
Details
Amodei has turned down the CEO offer
Amodei has declined the CEO position offered by OpenAI due to his current role at Anthropic. However, it is still uncertain if the merger proposition led to any significant talks between the two organizations.
Anthropic, a start-up founded two years ago, is locked in a fierce battle with OpenAI for top researchers and clients in the large-language model development sector.
What Next?
Competing chatbots: Claude v/s ChatGPT
Anthropic offers Claude, a chatbot that directly competes with OpenAI's ChatGPT. Both firms are working hard to make their mark in the fast-growing AI chatbot industry.
As competitors, they concentrate on attracting the best talent and securing clients for their respective large-language model technologies, making the idea of a merger a fascinating twist in this competitive environment.
Insights
Battle of bigwigs
Microsoft's stake in OpenAI stands at 49%, while the remaining ownership is divided among other investors and employees, holding another 49%.
The non-profit parent company of OpenAI retains a marginal 2% stake, according to Semafor.
On the other hand, Google committed investments of up to $2 billion into Anthropic. Not long ago, the start-up also raised $4 billion in investments from Amazon.
Insights
OpenAI investors considering suing the board
Some investors in OpenAI are considering taking legal action against the company's board, sources revealed to Reuters after the directors ousted Altman as CEO and sparked a potential mass exodus of employees.
Sources said investors are working with legal advisers to study their options. Whether they will proceed with legal action against OpenAI remains unclear.
The investors are anxious about potential losses amounting to hundreds of millions of dollars tied to their investments in the company.