Sam Altman’s ego is a turn-off: Why Aswath Damodaran would invest in Anthropic over OpenAI

Veteran valuation expert Aswath Damodaran, in a recent interview with The Prof G Markets, said he would prefer Anthropic over OpenAI as an investment choice if either company were to go public, not because of fundamentals, but due to leadership dynamics.

Damodaran, a professor at NYU's Stern School and a respected voice on valuation and risk, said he would back Anthropic over OpenAI “purely based on the ego of the people running the company.”

“With Sam Altman, he is smart and intelligent, but because of his ego, he could overplay his cards, thinking his cards are better than others,” Damodaran said. “This is a space where managers should learn from what is going on. I am not sure OpenAI is capable of learning and changing the way Anthropic is willing to.”


He went on to say that, on intrinsic value, he wouldn’t buy either company given their rich valuations. However, if pressed to hold an “LLM in your portfolio,” Anthropic could be the better choice.

Both OpenAI and Anthropic sit atop the AI world with jaw-dropping private valuations that dwarf most public tech companies. OpenAI raised the largest single private tech funding round in history, totaling about $40 billion and placing its valuation near $730 billion according to recent reports, potentially making it one of the most valuable private companies ever.

Nvidia is reportedly planning a $30 billion investment in OpenAI in the next funding round, with participation from Amazon, Microsoft, and SoftBank, highlighting continued confidence in the company’s future despite questions about profitability and market positioning.

Anthropic, by contrast, closed a massive funding round earlier in February 2026, raising $30 billion at a $380 billion valuation, the second-largest AI fundraising in history behind OpenAI’s round. This positions the former OpenAI research team’s venture firmly alongside the biggest names in tech.

The valuation gap between the two rivals is significant, but both occupy the rarefied territory usually reserved for the largest public technology franchises.

Amid these dizzying private-market valuations, the race for superior AI has sparked debate over its broader impact on humanity, including productivity and jobs. Anthropic recently released a series of plugins that triggered a dramatic sell-off in broader software markets, both in India and the US.