OpenAI, Microsoft at Odds

OpenAI, Microsoft at Odds

27 June 2025

OpenAI and Microsoft are reportedly in disagreement over the definition of Artificial General Intelligence (AGI) and a related contract clause. The clause stipulates that Microsoft's access to OpenAI's technology would be revoked upon the achievement of AGI. Microsoft is pushing for the removal of this clause, while OpenAI has so far declined. Some suggest OpenAI might declare AGI prematurely for strategic advantage.

Under the terms of the agreement, AGI is defined as when OpenAI's AI systems generate $100 billion in profit. Microsoft's substantial investment in OpenAI, approximately $10 billion, has led to increasing tensions over control and future technologies. OpenAI's planned transition into a public-benefit corporation requires Microsoft's approval, adding another layer of complexity to their negotiations.

The partnership between Microsoft and OpenAI began in 2019, with Microsoft investing $1 billion to support OpenAI's AI development on its Azure cloud platform. The evolving dynamics of this partnership highlight the challenges of balancing capital investment with maintaining autonomy in AI research and ethical frameworks.

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Published on 27 June 2025
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