Microsoft's AI Investment at Risk Over OpenAI's AGI Claims
Microsoft's massive OpenAI investment faces elimination if AGI is declared. Learn how this contractual clause could reshape AI industry dynamics.
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July 12 News: Microsoft and OpenAI's confidential cooperation agreement includes a provision that once OpenAI determines it has achieved AGI, Microsoft will immediately lose access to its new models, and their multi-year partnership will automatically terminate.
This clause has now come to light, exposing fundamental disagreements between the two companies regarding AGI prospects—Microsoft believes AGI remains far off, while OpenAI is convinced AGI is imminent.
The clause explicitly states: When OpenAI's board announces that its models have achieved AGI capabilities that "surpass humans in most economically valuable work" and demonstrate potential profits exceeding $100 billion, Microsoft will immediately lose access to next-generation models, all cooperation agreements will automatically terminate, and Microsoft will be prohibited from independently developing AGI products until the contract expires or a new agreement is signed.