In a significant revelation stemming from the ongoing legal disputes in the artificial intelligence sector, court documents show that OpenAI and its chief rival, Anthropic, held discussions about a potential merger. The talks occurred in the turbulent days immediately following the brief removal of Sam Altman as OpenAI's CEO in November 2023.
The details emerged from a deposition given by OpenAI co-founder and former chief scientist Ilya Sutskever. The testimony, part of Elon Musk's lawsuit against OpenAI, provides an unprecedented look into the strategic maneuvers considered during one of the most chaotic periods in the company's history.
Key Takeaways
- OpenAI and Anthropic explored a merger in November 2023 after Sam Altman was fired as CEO.
- The proposal would have seen Anthropic's leadership, including CEO Dario Amodei, take over the combined entity.
- OpenAI co-founder Ilya Sutskever revealed these talks during a deposition for Elon Musk's lawsuit against OpenAI.
- Sutskever stated he was "very unhappy" with the merger idea, while other board members were more supportive.
- The discussions were brief and ended after Anthropic raised unspecified "practical obstacles."
A Surprising Proposal Amid Chaos
The merger discussions were initiated shortly after the OpenAI board unexpectedly fired Sam Altman, sending shockwaves through the tech industry. According to Sutskever's testimony, a call was arranged between members of OpenAI's board and the leadership of Anthropic, including CEO Dario Amodei and his sister, president Daniela Amodei.
The proposal on the table was radical: a full merger of the two leading AI labs, with Anthropic's executive team assuming control of the new, combined organization. This would have fundamentally reshaped the landscape of AI development, uniting the creators of ChatGPT and Claude under a single umbrella.
During his 10-hour deposition, Sutskever described Anthropic's reaction to the idea. "I recall Anthropic expressing their excitement about it," he stated, while also noting they immediately pointed to potential difficulties. "And expressing the issue ā the practical challenges that they would have with it," Sutskever added.
The Altman Ousting
In November 2023, the board of OpenAI abruptly removed Sam Altman from his position as CEO, citing a lack of candid communication. The move triggered a near-revolt among employees, with hundreds threatening to resign and follow Altman to Microsoft. The crisis concluded within days with Altman's reinstatement and a significant restructuring of the board.
Internal Division at OpenAI
While Anthropic was reportedly excited by the prospect, the idea of a merger was not universally welcomed within OpenAI's leadership. Sutskever, who was on the board that initially voted to remove Altman, made his opposition clear during his deposition.
He described himself as being "very unhappy" about the potential deal and confirmed that he "really did not" want to see it happen. His stance, however, put him in the minority among his fellow board members at the time.
"They were a lot more supportive, yes," Sutskever said of the other board members' views on the merger. He singled out then-board member Helen Toner as being the "most supportive" of the proposal.
This division highlights the deep fractures within the OpenAI board during the leadership crisis. While some members were apparently willing to consider a complete overhaul of the company's structure by merging with a rival, Sutskever remained resistant to such a drastic step.
A Short-Lived Idea
Despite the initial excitement, the merger talks were described by Sutskever as lasting "extremely briefly." The momentum stalled and ultimately collapsed due to issues raised by Anthropic. "My recollection is that there were some practical obstacles that Anthropic has raised, and so the proposal did not continue," he testified, though he could not specify what those obstacles were.
The Backdrop of a Larger Legal Battle
Sutskever's deposition is a key component of the high-stakes lawsuit filed by Elon Musk against OpenAI and Sam Altman. Musk, an original co-founder of OpenAI, alleges that the company betrayed its founding mission as a non-profit dedicated to developing safe AI for the benefit of humanity.
The lawsuit claims that OpenAI's transformation into a for-profit entity, closely allied with Microsoft, violates its original charter. Musk's legal team is using depositions like Sutskever's to build a case that the company's leadership has prioritized profit over its non-profit goals.
The legal fight has become increasingly personal, spilling over onto social media. In a recent exchange on X (formerly Twitter), Musk accused Altman of stealing a non-profit. Altman retorted that the company's current structure is necessary to achieve its mission of creating the "largest non-profit ever."
What Happens Next
The revelations from the deposition add another layer of complexity to the ongoing legal and corporate drama surrounding OpenAI. Key questions remain:
- What were the "practical obstacles" that prevented the merger?
- How would a combined OpenAI-Anthropic entity have navigated the competitive and regulatory landscape?
- Will further details about the board's internal deliberations during the crisis come to light?
Sutskever has been ordered to sit for a second deposition, where he is expected to face further questions about his financial interests in OpenAI and a confidential memo written by co-founder Greg Brockman about Altman's ouster. As the legal proceedings continue, more details about this pivotal moment in AI history are likely to emerge, offering further insight into the power struggles shaping the future of artificial intelligence.