Search

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.

Advertisement
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 Strange Commercial Indicator for AGI

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

Photo Credit: Microsoft

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.

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.

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

 
Show Full Article
Please wait...
Advertisement

Related Stories

Popular Mobile Brands
  1. Reliance Jio Launches New Value Packs in India; May Revise Older Plans Soon
  2. Samsung Brings Back Familiar Branding With the New Galaxy S25 Edge
  3. Airtel Introduces New Voice and SMS-Only Prepaid Plans After TRAI Mandate
  4. Samsung Galaxy S25 Ultra With Snapdragon 8 Elite Chip Launched: See Price
  5. Here's How the Samsung Galaxy S25 Series Is Priced in India
  6. iQOO 14 Series Could Include a 'Pro' Model Next Year, Suggests Tipster
  7. Samsung Galaxy S25, Galaxy S25+ With Triple Rear Camera Setup Launched
  8. Apple's iPhone SE 4, iPad (11th Gen) Might Be Equipped With These Chips
  1. Xiaomi, Vivo and Oppo Tipped to Launch Slim Phones Like the Samsung Galaxy S25 Edge
  2. WhatsApp, Meta Win Relief as NCLAT Suspends Data Sharing Ban
  3. Finland is Now the 53rd Member of the Artemis Accords for Lunar Exploration
  4. iPhone SE 4 Tipped to Debut With A18 Chipset Used in iPhone 16; iPad (11th Gen) Said to Feature A16 Bionic Chip
  5. OpenAI Tells Delhi High Court ChatGPT Data Removal will Breach US Legal Obligations
  6. Google TV Testing Gemini AI-Powered News Brief Feature, Available to Select Users
  7. New Research Sheds Light on Iron’s Role in Earth’s Core Dynamics
  8. Realme 14T Colourways and Storage Variants Leak Ahead of Launch in India: Report
  9. Earth's Hidden 'Ignorosphere' Could Provide Insights into Auroras
  10. Tecno Camon 40 Series Phones Reportedly Spotted on FCC, NBTC Certification Sites
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.
Trending Products »
Latest Tech News »