One day both heads of the school at Pumbeditha met in Bagdad at an installation ceremony, at which it was customary to give an address. The capital of the Caliphate had at this time a numerous Jewish community and several synagogues. Bagdad, which was nearer to Pumbeditha than to Sora, belonged to the district of the School of Pumbeditha. Its president was there given the preference to him of Sora.

When the lecture was to begin, and it was proclaimed aloud, "Hear what the heads of the schools are about to say," those present burst into tears on account of the disunion in their midst. The tears of the multitude had so mighty an effect upon Joseph ben Chiya that he arose, and publicly tendered his resignation in favor of his opponent.

He received an insulting blessing as the reward of his noble resolve. "May God give you a share in the world to come," said his opponent, who now assumed his position. It was only after Abraham's death (828), that the noble Joseph was re-installed as Gaon of Pumbeditha (828–833).

All disputes had ceased in the school of Sora, but they soon broke out again, and created such confusion, that Sora was without a Gaon for two years (837–839). We are in the dark as to the true reason of all this discord, but it is probable that the rise of Karaism had something to do with it. However much the Rabbanites hated the Karaite sect, and though they declared it heretical, and kept away from it, yet they adopted several of its teachings, and imitated it in others.

But if Anan's sect had sown the seeds of dissension amongst the followers of the more ancient sect, it was itself not by any means free therefrom. The principal dogma of Karaism was unlimited freedom in exegesis, and the regulation of religion according to the result of honest inquiry. The result was that every Karaite constructed his Judaism according to his own interpretation of the text. Religious practice was regulated according to the clever or silly ideas of the expositor. Moreover, exegesis was yet in its infancy. The knowledge of the Hebrew language, the basis of a healthy, rational exegesis, was still scanty, and arbitrariness had every opportunity of asserting itself. Every one believed himself to be in possession of the truth, and when he did not condemn them, pitied those who did not share his views. We have a sad picture of the condition of Karaism scarcely a century after Anan's death. New sects, too, arose from it, the founders of which had strange ideas about some customs of Judaism. Musa (or Mesvi) and Ishmael, from the town of Akbara (seven miles east of Bagdad), are said to have held peculiar views about the observance of the Sabbath. What these views were we do not now know, but they approached the doctrines of the Samaritans. The two Akbarites further declared that the Pentateuchal prohibition against eating certain parts of the fat of an animal only referred to the sacrifices, and that it was permissible to use them otherwise. Musa and Ishmael found followers who lived according to their doctrines. These formed a sect within Karaism, and called themselves Akbarites.

Simultaneously with these there arose another false teacher, Abu-Amran Moses, a Persian from the little town of Safran (near Kerman-Shah in Persia), who had emigrated to the town of Tiflis in Armenia. Abu Amran Altiflisi propounded other views, which he believed were based upon the text of the Bible. He, like the other Karaites, wished to have the marriage of an uncle with his niece considered among the prohibited unions. He had peculiar views about the calendar, differing both from those of the Karaites and those of the Rabbanites. There was to be no fixed calendar, nor was the month to commence when the new moon became visible, but at the moment of its eclipse. Moses, the Persian, denied bodily resurrection, and introduced other innovations which are not known in detail. His followers formed themselves into a peculiar sect, under the name of Abu-Amranites or Tiflisites, and continued to exist for several centuries.

Another Moses (or Mesvi), from Baalbek in Syria, continued the schism, and departed still more from Karaism. He affirmed that the Feast of Passover must always happen on Thursday, and the Day of Atonement on the Sabbath, because this day is designated in the Bible as "the Sabbath of Sabbaths." In many points, Moses of Baalbek differed from both the Karaites and the Rabbanites. He enacted amongst his sect that in praying they should always turn to the west, instead of turning in the direction of the Temple. He, too, formed a sect called by his name, which continued to exist for a long time.

As Karaism had no religious center, and no spiritual court to represent its unity, it is quite natural that there could be no sympathy between one Karaite community and another. And so it happened that the people of Khorasan observed the festivals in a manner different from that of the other Karaites.

In the principles which the Karaites by and by were forced to lay down, in order, in a measure, to put a stop to the individualistic tendencies of their adherents, who were always forming new sects, they recognized the authority of tradition. They accepted the laws for slaughtering and the manner of fixing the beginning of each month, under their rule that a great many customs, not prescribed in either the Law, the Prophets or the Hagiographa, yet universally observed among the members of the Jewish race, were obligatory as religious practices. This rule of agreement or analogy was later called by them tradition (Haatakah) or hereditary teaching (Sebel ha Yerusha). In practice, however, they were arbitrary, inasmuch as they retained one custom as traditional, while they rejected others possessed of equal claims to be considered traditional. The rule of analogy led Karaism into new difficulties, especially as regards the marriage of certain blood-relations. They fell from one difficulty into another. They held that the affinity between a man and his wife was, according to the Bible, continuous. Consequently step-children should not be allowed to intermarry. But they went still further. The affinity between a man and his wife continues, they said, even if the marriage is dissolved. If in such a case the husband or the wife marries again, the affinity extends to the new families, although they are unknown to each other. Hence the members of the family of the first husband cannot intermarry with the members of the second husband's family. This affinity continues to the third and fourth generations. Thus the circle of affinity was considerably enlarged. The authors of this system of artificial relationship called it "handing over" (Rikkub, Tarkib). Why they should have stopped at the fourth generation it is difficult to see, but it appears that they feared the ultimate consequences. Such was the confusion in which Karaism had enveloped itself in its endeavor to break with the past.