Microsoft, OpenAI discuss AGI access

Microsoft and OpenAI are reportedly in discussions to revise their existing partnership agreement, focusing on continued access to OpenAI's technology, even if the startup achieves Artificial General Intelligence (AGI). OpenAI defines AGI as AI systems that outperform humans at most economically valuable work. The current agreement, set to run through 2030, stipulates that Microsoft's rights to use new OpenAI tech would be limited upon the achievement of AGI or if OpenAI reaches $100 billion in cumulative investor profits.

Microsoft is seeking to ensure uninterrupted access to OpenAI's advanced AI models, which power various applications, including chatbots and intelligent automation. OpenAI, on the other hand, desires greater flexibility to serve non-Azure clients and enforce strict safety standards. These negotiations occur as OpenAI explores cloud deals with Google, Oracle, and CoreWeave, reducing its reliance on Microsoft Azure. The outcome of these discussions could significantly impact the competitive landscape of the AI sector, influencing funding, strategies, and valuations.

Both companies are vying for dominance in enterprise and consumer AI deployments. Microsoft has invested approximately $13.75 billion in OpenAI and holds an exclusive license to integrate OpenAI's GPT models into its products. Any shift in the terms of their agreement could ripple through the market, affecting the broader AI ecosystem.