- FTX’s Anthropic declines merger with OpenAI.
- FTT token dropped 12% post-announcement.
- The merger proposal came after major turmoil in OpenAI.
The tech world has recently been captivated by the turmoil at OpenAI, a leading company in the artificial intelligence sector. The ousting of Sam Altman as CEO led to uncertainty and upheaval within the organization.
Amidst this chaos, OpenAI’s board sought stability by proposing a merger with Anthropic, a company closely connected to the bankrupt crypto exchange FTX. However, recent reports suggest that Anthropic has declined this merger, causing a drop in the value of FTX’s native cryptocurrency, FTT.
Why Anthropic Declined the OpenAI Merger
Over the weekend, OpenAI’s board reached out to Anthropic’s CEO, Dario Amodei, with a dual proposition: to merge the two AI startups and for Amodei to take over as CEO, replacing Sam Altman. This offer came amid a leadership crisis at OpenAI, marked by Altman’s departure and subsequent appointment at Microsoft, alongside other OpenAI personnel.
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Amodei, however, declined the proposal on both counts. Anthropic, backed by investments from FTX, Google, and Amazon, has been developing its own AI models, notably the Claude AI, rivaling OpenAI’s GPT series.
The rejection of the merger proposal by Anthropic, a company in which FTX held significant investments, directly impacted the price of FTT, FTX’s native token. Following the news, the price of FTT experienced a notable decline, dropping by 12% to $2.99. This drop could be the result of the market reacting to the potential missed opportunities stemming from the failed merger.
Investors and token holders likely perceived the declined merger as a lost chance for FTX to strengthen its position in the AI sector through Anthropic, leading to a loss of confidence and a subsequent sell-off in FTT.
Turmoil in OpenAI, Sam Altman Leaves Company
Sam Altman’s dismissal, announced by the company’s board, was a decision that shocked both the tech industry and OpenAI’s employees. The board cited a lack of consistent candor in Altman’s communications as the primary reason for his removal, a move that left the organization and its staff reeling from the sudden change.
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Following Altman’s ouster, Greg Brockman, OpenAI’s president and co-founder, also stepped down as chairman of the board and subsequently left the company. These rapid changes in OpenAI’s leadership led to significant unrest among the staff, with many employees reportedly threatening to quit in response to the board’s decisions.
Mira Murati, the Chief Technology Officer of OpenAI, was appointed as interim CEO but was soon replaced by Emmett Shear, the co-founder of Twitch.
On the Flipside
- Despite significant issues, OpenAI still owns ChatGPT, which is by far the world’s most commonly used large language model. The ChatGPT brand still gives significant value to the company.
- Despite the FTX bankruptcy, the FTT token still holds just under $1B in market capitalization. This valuation reflects the hope that FTT token holders will be the beneficiaries in the FTX bankruptcy proceedings.
Why This Matters
Read more about the chaos at OpenAI:
OpenAI Boots Sam Altman and Sparks Worldcoin Rollercoaster
Read more about the Celsius bankruptcy:
Celsius Will Shift to Bitcoin Mining-Only Under SEC Pressure
