- AGI Definition Tied to Profitability: OpenAI and Microsoft define AGI as a system that can outperform humans at most tasks and generate at least $100 billion in profits, reflecting a focus on commercial benchmarks over purely technical achievements.
- Tension in Partnership: Microsoft and OpenAI’s collaboration faces challenges as both companies develop competing AI tools, with OpenAI seeking to end profit-sharing and exclusive cloud hosting agreements to regain autonomy.
- Uncertain Path to AGI: OpenAI’s projected $4 billion revenue for 2024 highlights the long road to achieving the $100 billion milestone, with mounting pressure to attract new investors and explore alternative cloud hosting options.
Leaked documents reveal a specific definition of “artificial general intelligence” (AGI) agreed upon by OpenAI and Microsoft. According to these documents, AGI refers to a system capable of outperforming humans in most tasks and generating at least $100 billion in profits. This financial benchmark reflects a strategic alignment between the two companies in 2023. While the AI community debates the feasibility and implications of AGI, OpenAI’s definition emphasizes its commercial potential rather than purely technical milestones.
The term “artificial intelligence” is often misunderstood, as many AI systems function as sophisticated prediction engines rather than truly intelligent entities. Despite this, OpenAI has secured over $13 billion in funding from Microsoft, enabling rapid advancements. This partnership includes a unique clause: OpenAI will cease providing Microsoft access to its new technologies once AGI is achieved. This arrangement balances the risk of concentrating power in Microsoft’s hands with the financial incentives needed to support OpenAI’s ambitious goals.
Initially established as a nonprofit aiming to benefit humanity, OpenAI now faces challenges in maintaining that mission while attracting sufficient investment. The agreement with Microsoft allows investors to claim profits up to a $100 billion cap before redirecting earnings to socially beneficial projects. However, skeptics question whether AI can truly meet these lofty expectations, as the technology’s current capabilities remain limited. OpenAI’s pivot toward a for-profit structure underscores the tension between its founding principles and the realities of funding competitive AI development.
Microsoft and OpenAI’s relationship has grown increasingly strained as their interests diverge. Microsoft has incorporated its in-house AI models into products like 365 Copilot to reduce reliance on OpenAI. As both companies develop competing productivity tools, the exclusivity of their partnership has become less tenable. OpenAI’s rumored desire to end profit-sharing and cloud hosting agreements with Microsoft further highlights the challenges in maintaining this collaboration. Microsoft, meanwhile, appears to prioritize developing proprietary technologies over deepening its ties with OpenAI.
OpenAI’s journey to the $100 billion profit mark remains uncertain, with 2024 revenue projections at $4 billion. This prolonged timeline risks locking OpenAI into an extended dependence on Microsoft under the current terms. OpenAI is exploring alternatives to reduce costs and secure new investors, including renegotiating cloud hosting agreements with other providers. Such steps could help OpenAI regain autonomy while addressing concerns from competitors like Google, which has urged regulatory scrutiny of the Microsoft-OpenAI partnership.
