A critical clause in the partnership agreement between Microsoft and OpenAI could void the deal if OpenAI develops artificial general intelligence (AGI). This provision is now a central point in renegotiations between the two companies. In an article for Wired, journalist Steven Levy reports that this clause has become a source of significant tension.
The agreement stipulates that if OpenAI’s board determines it has achieved AGI, it can terminate Microsoft’s access to its new and most advanced models. The contract defines AGI as a system that “outperforms humans at most economically valuable work”. A second condition requires a determination that the technology is capable of generating profits exceeding $100 billion.
Sources told Wired that the contract also prohibits Microsoft from developing its own AGI for the duration of the agreement.
Originally, OpenAI reportedly insisted on the clause as its leaders believed AGI was imminent. Microsoft agreed, viewing it as a low risk. However, with the rapid advancement of AI and statements from OpenAI CEO Sam Altman that AGI could arrive soon, the situation has changed.
OpenAI is currently seeking to change its corporate structure to a public benefit corporation. This change requires Microsoft’s approval, giving the software giant leverage to renegotiate or eliminate the AGI clause entirely.
