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OpenAI Reportedly Considering Removing ‘AGI Clause’ From the Microsoft Agreement to Gain Investments

OpenAI is allegedly contemplating the removal of a clause from its contract with Microsoft to attract additional investments from the tech company. According to the report, the AI organization is exploring the possibility of eliminating the artificial general intelligence (AGI) clause, which specifies that the Redmond-based firm will not gain access to the ChatGPT creator’s most sophisticated AI models once the latter achieves AGI. Significantly, this action is being considered to motivate Microsoft to continue increasing its financial contributions to OpenAI.

OpenAI Allegedly Considering Eliminating the AGI Clause


As stated in a Financial Times article, the ChatGPT creator is deliberating whether to eliminate the essential AGI clause from its agreement with Microsoft. Quoting anonymous sources familiar with the situation, the report indicated that the AI organization is having internal discussions about how removing the AGI clause might encourage Microsoft to invest more capital into OpenAI.

On its website, OpenAI has indicated that the collaboration with Microsoft does not encompass AGI technology, and any such technology is “explicitly carved out of all commercial and IP licensing agreements” as per its nonprofit charter. Additionally, OpenAI decides when its generative AI system has reached AGI.

Nevertheless, the report suggests that OpenAI is now weighing the option of striking this clause. This would imply that Microsoft would obtain access to OpenAI’s most advanced AI models even after the technology attains human-like intelligence. Importantly, several scientists, including Geoffrey Hinton, who is recognized as the godfather of generative AI, have publicly addressed the potential dangers arising from the commercialization of AGI. This action would also violate the nonprofit charter of the AI entity.

The article additionally underscored recent comments made by OpenAI CEO Sam Altman at a New York Times conference regarding the structure of the company. Altman reportedly stated that the founding team did not anticipate that the company would evolve into a product entity and would require considerable capital to operate. “If we knew those things, we would have picked a different structure,” the publication cited the CEO as stating.

Importantly, Microsoft has poured over $13 billion (approximately Rs. 1. 1 lakh crore) into OpenAI since the establishment of their partnership. However, OpenAI is reported to be in need of further financial support due to the exceedingly high expenses associated with developing new and more advanced AI models and conducting substantial processing on its cloud servers. The urgency is heightened by the capital expenditures of competing companies such as Google and Amazon.

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