Microsoft in Talks to Maintain Access to OpenAI’s Tech Beyond AGI Milestone

Microsoft is reportedly in advanced discussions with OpenAI to secure continued access to its cutting-edge AI technology, even if the startup achieves its ambitious goal of Artificial General Intelligence (AGI). This crucial agreement would pave the way for OpenAI’s transition into a fully commercial entity, a move pivotal for both companies’ futures.

Citing anonymous sources, Bloomberg reports that negotiations have been ongoing and a deal could materialize within weeks. While talks are positive, potential hurdles include regulatory scrutiny and a lawsuit filed by Elon Musk, aimed at preventing OpenAI’s shift to a for-profit model.

OpenAI currently operates with a unique structure: a mission-driven non-profit overseeing a capped for-profit company. Despite this setup, which is designed to limit commercialization and fundraising, OpenAI has attracted billions in investment and largely functions like a traditional tech giant. The proposed changes aim to remove these structural constraints.

As OpenAI’s largest investor, with a staggering $13.75 billion committed and rights to some of its intellectual property, Microsoft has a significant interest in these negotiations. The current agreement is set to expire in 2030 or upon OpenAI’s declaration of AGI, the definition of which remains a subject of debate.

Microsoft’s formidable Azure OpenAI Service and its integrated Copilot across Windows, Office, and GitHub are heavily reliant on OpenAI’s models. Losing access post-AGI would represent a substantial strategic setback. Furthermore, OpenAI has indicated to investors its expectation of a reduced revenue share paid to Microsoft by 2030.

A source close to the discussions revealed OpenAI’s intent to ensure Microsoft safely deploys its technology, especially as AGI development progresses. From Microsoft’s perspective, a shift to a standard for-profit structure would offer formal equity and significant returns, currently capped under OpenAI’s existing model. Reports suggest Microsoft is seeking an equity stake in the low-to-mid 30% range in the restructured company.