Microsoft in talks to lock in OpenAI tech access even after AGI breakthrough
The negotiations also tie into a bigger restructuring plan. OpenAI has been working on transitioning into a publicbenefit corporation, a change that needs Microsoft's go-ahead. In exchange for that green light, Microsoft is said to be eyeing a larger equity stake in the revamped company, as well as an extension to its access rights, which – as things stand – either end in 2030 or as soon as OpenAI decides AGI has arrived (whichever comes first).The trouble, of course, is that no one can quite agree on what counts as AGI. Is it when a chatbot writes a symphony? Or can it explain the ending of Inception without hesitation? The ambiguity makes the whole clause rather questionable, which is why both companies have been renegotiating for months.Adding another layer of drama, OpenAI has reportedly been telling its investors that over time, Microsoft will take a smaller slice of its revenues, an arrangement the Windows maker might not be thrilled about. Tensions between the two aren't exactly new. In June, The Information reported that the partners had already clashed over this AGI clause. And now, with OpenAI leaning on rival cloud providers, Google, Oracle and CoreWeave, to keep up with demand for computing power, the spotlight on their relationship has only intensified.There's also Elon Musk's lawsuit hanging over OpenAI. The Tesla and SpaceX boss, who cofounded the company alongside Sam Altman in 2015, has accused the startup of straying from its original nonprofit mission of building AI for the benefit of humanity. His gripe? OpenAI has become too cosy with Microsoft and too focused on money.For Microsoft, the stakes couldn't be higher. Azure's OpenAI Service, the backbone of its generative AI push, depends entirely on access to OpenAI's latest models. Losing that would be like pulling the plug on Copilot overnight, a nightmare scenario ahead of its earnings report this Wednesday, where investors are certain to ask about the future of the partnership. - EndsTune In
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