OpenAI considers changes to AGI access for Microsoft

According to a Financial Times report, OpenAI is in talks to modify a clause in its agreement with Microsoft (NASDAQ: MSFT) that currently restricts the tech giant from accessing OpenAI’s most advanced models upon the development of artificial general intelligence (AGI). AGI is defined as a highly autonomous system superior to human performance in most economically valuable work. As it stands, once OpenAI achieves AGI, Microsoft would lose access to this technology, with the decision of AGI achievement resting with the OpenAI board.

OpenAI, now restructuring to become a public benefit corporation, is contemplating removing this provision, which would allow continued investment and access for Microsoft even after AGI is reached. The clause was originally intended to prevent the misuse of such powerful technology for purely commercial purposes, as AGI is excluded from all commercial and IP licensing agreements on OpenAI’s website.

The potential elimination of this clause is significant for Microsoft, which has invested over $13 billion in OpenAI and may be deterred from further investment if the current terms remain. OpenAI, valued at $150 billion and led by Sam Altman, is amid a transformation from a non-profit research lab to a profit-driven entity, necessitating more capital to compete with other tech giants like Google (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN) in the development of advanced AI models.

During a New York Times (NYSE: NYT) conference on Wednesday, Altman discussed the unprecedented capital requirements and the company’s evolution, indicating a shift in OpenAI’s approach to AGI and its commercialization.

OpenAI first started accepting outside investment in 2019, with Microsoft’s $1 billion investment earmarked for licensing pre-AGI technologies to help cover development costs. Investors were advised to view their contributions as akin to donations, given the uncertainty of money’s role in a post-AGI scenario.