OpenAI’s Almost-Merger with Anthropic Reveals Leadership Disputes and Governance Issues

During a recent deposition related to Elon Musk’s lawsuit against CEO Sam Altman and OpenAI, cofounder Ilya Sutskever disclosed that OpenAI came close to merging with competitor Anthropic after Altman was briefly removed from his CEO position in late 2023. The 10-hour testimony, part of Musk’s legal dispute over changes at OpenAI, described how board members, including Helen Toner, seriously considered a merger that would have placed Anthropic in charge of OpenAI—a scenario Sutskever called “very unhappy” in

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The idea for the merger surfaced just days after Altman’s dismissal, with Anthropic’s leaders, CEO Dario Amodei and president Daniela Amodei, reportedly eager about the collaboration but aware of significant obstacles. Sutskever, who was on the board at the time, was one of the few who opposed the plan, which ultimately fell through due to unresolved issues. “Other board members were much more in favor,” Sutskever noted, singling out Toner as the strongest supporter. The deposition also highlighted governance errors, such as hasty decisions and reliance on unconfirmed information from OpenAI CTO Mira Murati, which Sutskever later acknowledged was “secondhand knowledge” in

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At the same time, Anthropic has become a major challenger, forecasting $70 billion in revenue by 2028 thanks to rapid B2B growth and alliances with Microsoft, Salesforce, and consulting firms like Deloitte and Cognizant in

. The company’s API revenue is projected to overtake OpenAI’s this year, with Claude Code approaching $1 billion in annualized revenue, according to those reports. Anthropic’s financial outlook, which includes better gross margins and plans for a possible $300–$400 billion valuation round, stands in contrast to OpenAI’s expected losses, which could total $115 billion by 2029 due to infrastructure spending, as mentioned in .

The ongoing legal and business rivalry between Musk and Altman has grown more intense. OpenAI’s transformation into a for-profit public benefit corporation—now valued at $130 billion—has come under fire from Musk, who accused Altman of “stealing a non-profit” in

. Altman argued that the change was essential for OpenAI’s goals, while Musk’s xAI continues to compete directly. Their dispute has become public, with Altman canceling a Tesla Roadster order and Musk responding over OpenAI’s new governance structure.

OpenAI’s outlook is uncertain as it deals with lawsuits, internal changes, and pressure from Anthropic. The company has suggested a possible IPO by 2027 but faces major financial challenges, including an expected annual cash burn of over $14 billion through 2026, according to

. Anthropic’s route to $70 billion in revenue depends on expanding enterprise use, improving model performance, and sticking to its B2B-focused approach, as outlined in a .