OpenAI and Microsoft have a secret agreement on AGI – sources

Leaked documents show that OpenAI and Microsoft agreed on terms regarding AGI development as early as 2023.

AGI, which stands for artificial general intelligence, is the next big step in developing AI technology. Such an AI model has capacities as potent as humans or surpasses them.

That’s why AGI has been controversial, as skeptics raise fears that AI with such cognitive powers could lead to human extinction or an irreversible global catastrophe.

“Our mission is to ensure that artificial general intelligence – AI systems that are generally smarter than humans – benefits all of humanity,” wrote OpenAI in a blog post in February 2023.

But ​the world is not ready for AGI. At least, that’s what senior OpenAI researcher Miles Brundage thinks. He served as OpenAI’s “senior adviser for the readiness of AGI” and left the company at the end of October this year.

For some time now, OpenAI has been under fire for not securing its models and silencing whistleblowers who raise concerns publicly. However, the criticism doesn’t seem to be slowing the company down.

"My guess is we will hit AGI sooner than most people in the world think," OpenAI CEO Sam Altman said during an interview at The New York Times DealBook Summit on December 4th.

The ChatGPT creator writes on its website that the AGI system is autonomous and is excluded from IP licenses and other commercial terms with Microsoft, which only apply to pre-AGI technology. The nonprofit board would decide whether AGI has been achieved.

However, after investing $13 billion in OpenAI, Microsoft has its own price tag on AGI. As the company gets closer to achieving it, leaked documents show that the two companies signed an agreement in 2023 with a secret definition for AGI.

The documents were first obtained by The Information and revealed that AGI will be achieved once OpenAI has developed an AI system that can generate at least $100 billion in profits.

The existing agreement allows Microsoft and other investors to claim a share of the profits until they have collectively received $100 billion.

OpenAI’s non-profit and benefit-all might be just a disguise in an effort to consolidate power. In November, Bloomberg reported that the company is engaged in initial discussions with California's attorney general's office regarding the potential transition to a for-profit company.

According to The Information, Microsoft and OpenAI have been discussing a range of adjustments to their agreement that would take effect if the company undergoes restructuring. All this could mean that Microsoft and OpenAI will eventually part ways.

Still, separating paths with Microsoft might not be as near as OpenAI would like. Reaching the $100 billion profit threshold is not that easy, as the company continues to burn cash.

According to financial documents reviewed by the New York Times, OpenAI’s monthly revenue hit $300 million in August this year, while the company expected about $3.7 billion in annual sales. However, the company is spending nearly $5 billion on sustaining the service.