OpenAI Reportedly Considering Removing ‘AGI Clause’ From the Microsoft Agreement to Gain Investments

The AGI clause in the OpenAI-Microsoft agreement allows the AI firm to not share its latest models once AGI is reached.

Written by Akash Dutta, Edited by Manas Mitul | Updated: 9 December 2024 19:14 IST

OpenAI Reportedly Considering Removing ‘AGI Clause’ From the Microsoft Agreement to Gain Investments

Photo Credit: Microsoft

The OpenAI website mentions that AGI is not part of any commercial or IP licensing agreements

Highlights

As per the agreement, OpenAI determines when AGI is reached
OpenAI has reportedly not made a final decision on this matter
Microsoft reportedly spent $13 billion (roughly 1.1 lakh crore) on OpenAI

OpenAI is reportedly considering removing a clause from its agreement with Microsoft in a bid to gain more investments from the tech giant. As per the report, the AI firm is discussing whether to remove the artificial general intelligence (AGI) clause, which states that the Redmond-based company will not get access to the ChatGPT maker's most advanced AI models once the latter reaches AGI. Notably, the measure is being considered to incentivise Microsoft to continue investing more money into OpenAI.

OpenAI Reportedly Considering Ditching the AGI Clause

According to a Financial Times report, the ChatGPT maker is planning whether or not to remove the crucial AGI clause from its agreement with Microsoft. Citing unnamed people with knowledge of the matter, the report claimed that the AI firm is internally discussing that the removal of the AGI clause could incentivise Microsoft to pour more funds into OpenAI.

On its website, OpenAI has stated that the partnership with Microsoft does not include AGI technology, and any such technology is “explicitly carved out of all commercial and IP licensing agreements” in accordance with its nonprofit charter. Further, OpenAI determines when its generative AI system has achieved AGI.

OpenAI Seeks to Unlock Investments by Removing 'AGI' Clause With Microsoft

However, as per the report, OpenAI is now considering removing this clause. This would mean that Microsoft will gain access to the most advanced AI models of OpenAI even after the technology has gained human-like intelligence. Notably, several scientists including Geoffrey Hinton, who is considered the godfather of generative AI, have spoken publicly about the harms that may come as a result of the commercialisation of AGI. The move will also break the nonprofit charter of the AI firm.

The report further highlighted recent statements made by OpenAI CEO Sam Altman at a New York Times conference, addressing the company structure. Altman reportedly said that the founding team was unaware that the company would become a product company and require massive capital to run. “If we knew those things, we would have picked a different structure,” the publication quoted the CEO as saying.

Notably, Microsoft has invested more than $13 billion (roughly Rs. 1.1 lakh crore) in OpenAI since the signing of the partnership. However, OpenAI is said to be in need of more financial funding due to the extremely high costs of developing new and more advanced AI models and running heavy processing on its cloud servers. The need is dire, especially considering the capital expenditure of rival companies such as Google and Amazon.

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Further reading: OpenAI, Microsoft, AI, Artificial Intelligence, AGI

Akash Dutta Email Akash Dutta

Akash Dutta is a Senior Sub Editor at Gadgets 360. He is particularly interested in the social impact of technological developments and loves reading about emerging fields such as AI, metaverse, and fediverse. In his free time, he can be seen supporting his favourite football club - Chelsea, watching movies and anime, and sharing passionate opinions on food. More