OpenAI and Microsoft Reportedly Have a Strange Commercial Indicator for AGI

The two entities reportedly agreed that an AI that can generate at least $100 billion in profits will be considered AGI.

Written by Akash Dutta, Edited by Siddharth Suvarna | Updated: 27 December 2024 19:20 IST

OpenAI and Microsoft Reportedly Have a Strange Commercial Indicator for AGI

Photo Credit: Microsoft

OpenAI is reportedly also making efforts to turn into a for-profit company

Highlights

AGI stands for artificial general intelligence
After reaching AGI, OpenAI and Microsoft’s agreement ends
OpenAI is reportedly trying to remove the AGI clause

OpenAI and Microsoft reportedly have a unique definition of what constitutes artificial general intelligence or AGI. As per the report, the two entities added a commercial indicator of AGI in last year's extension of their partnership. The new definition claims that an AI system that can generate at least $100 billion (roughly Rs. 854 lakh crore) in profits will be considered AGI. Interestingly, an earlier report claimed that the AI firm is also trying to remove the AGI clause from the agreement, which states that once AGI is reached, Microsoft will not have access to any of OpenAI's AI models.

OpenAI and Microsoft's AGI Definition Highlights Financial Ambition

The Information reported on Thursday that the existing agreement between OpenAI and Microsoft has a strange definition of AGI. This agreement, which was announced in January 2023, was an extension of the 2019 partnership deal. Notably, this was a multiyear deal which also made Microsoft's Azure platform the exclusive cloud provider for OpenAI. The tech giant has reportedly invested $13 billion (roughly Rs. 1.1 lakh crore) in the AI firm.

According to the report, AGI has been defined as an AI system that can generate at least $100 billion in profits. The agreement is said to not include any technical or philosophical benchmark. However, most scientists working with the technology agree that an AGI is an AI system that has the intelligence level and cognitive abilities of a human and can understand, learn, and apply knowledge across a wide range of tasks. Notably, AGI is different from superintelligence which is an intelligence system that far surpasses the abilities of a human.

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The phrasing of AGI in the agreement might be strange to some, but it does serve a purpose. As per the report, the existing multiyear agreement comes to an end after OpenAI reaches AGI. That means Microsoft does not get early access to any of the future AI models after that. Additionally, the tech giant also loses the exclusive right to be OpenAI's cloud provider.

As per the publication, OpenAI is also trying to renegotiate the existing agreement, as it fears that the abovementioned AGI clause might prevent Microsoft from investing further in the company. However, to remove that, the AI firm will first have to convert into a for-profit company.

The current negotiations with Microsoft, which is a major backer in the company, are reportedly on four areas. First is Microsot's equity stake in the for-profit company. Second is whether Azure continues to be OpenAI's exclusive cloud provider. Third, the tech giant's rights to the AI firm's future AI models. And last, whether the Windows maker will continue to take 20 percent revenue from the ChatGPT maker.

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Further reading: OpenAI, Microsoft, AI, Artificial Intelligence

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