Microsoft and OpenAI at Odds Over Defining and Achieving AGI Milestone
The 2019 alliance between Microsoft and OpenAI, intended to accelerate advancements in artificial intelligence, is facing a significant hurdle over a fundamental debate: what constitutes artificial general intelligence (AGI), and who gets to decide when it has been achieved? The crux of the issue lies in the terms of their 2022 contract. This agreement, worth $10 billion from Microsoft, granted OpenAI substantial funding to develop its cutting-edge technology. However, the contract also includes a clause that allows OpenAI to cut Microsoft off from its most advanced models as soon as its board of directors declares that AGI has been reached. OpenAI, despite its for-profit operations, retains a not-for-profit status, with its board holding the authority to define and identify AGI. If the board determines that AGI has the capability to generate over $130 billion in profits, Microsoft would lose its exclusive rights to use and commercialize OpenAI's technology. Microsoft, however, retains the right to challenge this decision and seek an external financial review. Recent months have seen tensions rise as OpenAI has signaled it might be close to declaring AGI. Microsoft executives, on the other hand, firmly believe that the company has not yet achieved this milestone. These disagreements have led to stalled talks on restructuring the partnership, adding to the uncertainty surrounding the future of their collaboration. This impasse underscores the broader challenges in defining and governing advanced AI technologies. As the race to achieve AGI continues, the criteria and processes for declaring its arrival will likely be subjects of intense scrutiny and debate, not just within the Microsoft-OpenAI alliance but across the entire AI community.
