OpenAI vs. Anthropic: How a bitter AI rivalry reshaped the industry
A bitter rivalry between OpenAI and its biggest competitor, Anthropic, has come into sharper focus following new revelations. Internal clashes over AI safety, leadership disputes, and commercial priorities led to a high-profile split in 2020—one that reshaped the industry. The Wall Street Journal has now uncovered fresh details about the tensions, including accusations of dishonesty and a struggle for control over cutting-edge technology.
The conflict began years before Anthropic's founding. Early disagreements at OpenAI centred on whether to sell advanced AI systems to governments or restrict access to the five nuclear powers on the UN Security Council. Dario Amodei, then a senior researcher, clashed with leadership, including CEO Sam Altman, over safety priorities and the company's direction.
By late 2020, the divisions deepened. Dario and Daniela Amodei, along with a group of employees, left OpenAI to launch Anthropic. The official reason cited was OpenAI's perceived lack of focus on safety—a claim the new company later used to position itself as the 'healthier alternative.' Tensions persisted even after the split, with disputes over control of language model projects and credit for contributions. The rivalry turned public during Altman's brief removal as OpenAI's CEO in late 2023. Internal messages revealed Amodei calling Altman 'dishonest' over the Pentagon deal, though an investigation later cleared Altman of wrongdoing. Since then, Anthropic has grown rapidly, dominating 90% of the B2B AI market with a projected $19 billion revenue run-rate by 2026. Amodei, now a prominent CEO, has openly criticised OpenAI's approach as 'safety theatre' while warning of unchecked AI development. Biographer Keach Hagey, who chronicled Altman's career, noted how personal and ideological clashes fuelled the breakup. What started as internal frustration has since evolved into a full-blown industry rivalry—one where safety, ambition, and business strategy remain at odds.
Anthropic now stands as OpenAI's most formidable competitor, built on the back of a contentious split. The company's rapid growth and sharp criticism of its former home reflect deeper divisions over how AI should be developed and deployed. With both firms shaping the future of the technology, the fallout from their feud continues to influence the sector's direction.
