Latest news with #AGI
Los Angeles Times
6 hours ago
- Business
- Los Angeles Times
Microsoft's access to OpenAI tech is the focus of contract talks
Microsoft Corp. is in advanced talks to land a deal that could give it ongoing access to critical OpenAI technology, an agreement that would remove a major obstacle to the startup's efforts to become a for-profit enterprise. The companies have discussed new terms that would let Microsoft use OpenAI's latest models and other technology even if the startup decides it has reached its goal of building a more powerful form of AI known as artificial general intelligence (AGI), according to two people familiar with the negotiations. Under the current contract, OpenAI attaining AGI is seen as a major milestone at which point Microsoft would lose some rights to OpenAI technology. Negotiators have been meeting regularly, and an agreement could come together in a matter of weeks, according to three people with knowledge of the situation, who requested anonymity to discuss a private matter. OpenAI Chief Executive Officer Sam Altman and Satya Nadella, his Microsoft counterpart, discussed the restructuring at the Allen & Co. conference in Sun Valley, Idaho, earlier this month, two of the people said. While the tone of the talks has been positive, some of the people cautioned that the deal isn't finalized and could hit new roadblocks. Moreover, OpenAI's restructuring plans face other complications, including regulatory scrutiny and a lawsuit filed by Elon Musk, an early backer who split with the company and accused the startup of defrauding investors about its commitment to its charitable mission. (OpenAI has pushed back at Musk's claims and said the billionaire is trying to slow down the company.) Negotiations over OpenAI's future as a profit-company have dragged on for months. Microsoft, which backed OpenAI with some $13.75 billion and has the right to use its intellectual property, is the biggest holdout among the ChatGPT maker's investors, Bloomberg previously reported. At issue is the size of Microsoft's stake in the newly configured company. The talks have since broadened into a renegotiation of their relationship, with the software maker seeking to avoid suddenly losing access to the startup's technology before the end of the current deal, which expires in 2030. Microsoft and OpenAI declined to comment. The partnership between the two companies helped inaugurate the AI age. Microsoft built the supercomputer that OpenAI used to develop the language models behind ChatGPT and, in exchange, won the right to bake the technology into its software offerings. The relationship began to fray when the OpenAI board fired (and then rehired) Altman in November 2023, an episode that shook Microsoft's faith in its partner. The rift only widened when the two companies began competing for the same customers — consumers who use their chatbots at home and corporations that have deployed the AI assistants to boost office productivity. Even as executives publicly touted their close ties, OpenAI sought to loosen its dependance on Microsoft, winning permission to build data centers and other AI infrastructure with rival companies. OpenAI is eager to alter its complicated nonprofit structure, in part to secure additional funding to keep building data centers to power its next-generation AI models. SoftBank Group Corp., which has said it would back OpenAI with tens of billions of dollars, has the option to reduce that outlay if OpenAI's restructuring isn't completed by the end of the year. OpenAI wants a larger slice of the revenue currently shared with Microsoft, and has sought adjustments to Microsoft's access to its intellectual property, two of the people said. Microsoft is looking for continued access to OpenAI technology after the current contract expires in 2030. There are range of concerns for OpenAI. The startup wants to ensure its business is well-positioned with whatever share of revenue and equity Microsoft receives in part to guarantee its nonprofit will be well-resourced with a significant stake in OpenAI, one person said. OpenAI also wants the ability to offer customers distinct products built on top of its models even if Microsoft has access to the same technology, the person said. And OpenAI wants to be able to find a way to provide its services to more customers, including government providers, not all of which are on Azure, Microsoft's cloud computing platform, the person said. At the same time, OpenAI seeks to guarantee that Microsoft adheres to strict safety standards when deploying OpenAI's technology, especially as it gets closer to AGI, the person said. Reaching agreement on what happens once OpenAI achieves artificial general intelligence has been particularly thorny. It's not clear why the language is in the contract, but it gives OpenAI a built-in way to strike out on its own just as its technology matures. The startup publicly defines AGI as 'highly autonomous systems that outperform humans at most economically valuable work.' The existing contract has separate clauses related to that threshold, which can be triggered by technical or business milestones, according to two people familiar with the matter. OpenAI's board has the right to determine when the company has reached AGI on a technical level. Under that scenario, Microsoft would lose access to technology developed beyond that point, one of the people said. The business milestone would arrive once OpenAI has demonstrated it can reach around $100 billion in total profits for investors including Microsoft — giving it the wherewithal to repay the return Microsoft is entitled to under the existing contract, one person said. In that scenario, Microsoft would lose its rights to OpenAI technology, including products developed before that trigger, another person said. Microsoft has the right to weigh in on the business milestone, but if the two companies end up at odds over the claim, they could wind up in court, two people said. Another provision in the current contract bars Microsoft from pursuing AGI technology itself, some of the people said. Microsoft, for its part, has demonstrated some flexibility in revised contract terms. The company agreed to waive some intellectual property rights related to OpenAI's $6.5 billion acquisition of io, the startup co-founded by iPhone designer Jony Ive, two of the people said. The software giant was less accomodating over OpenAI's proposed acquisition of AI coding startup Windsurf, the people said. That deal fell apart earlier this month, in part because of the tension with Microsoft, Bloomberg reported. Windsurf, which sells coding tools that compete with Microsoft's products, didn't want the tech giant to have access to its intellectual property — a condition that OpenAI was unsuccessful in getting Microsoft's agreement on, people familiar said. Ultimately, Windsurf's co-founders and a small group of staffers agreed to join Alphabet Inc.'s Google in a $2.4 billion deal. In recent weeks, the companies have been negotiating Microsoft's ownership in a restructured OpenAI — with the two sides discussing an equity stake for Microsoft in the low- to mid-30% range, according to a person familiar with the matter. The Financial Times previously reported on the stake talks. But if Microsoft deems the stake and other changes to the contract insufficient, the company is willing to abandon the talks and stick with the current contract terms, another person said. Day , Ghaffary, Bass and Ford write for Bloomberg.
Reuters
7 hours ago
- Business
- Reuters
Microsoft in advanced talks for continued access to OpenAI tech, Bloomberg reports
July 29 (Reuters) - Microsoft (MSFT.O), opens new tab is in advanced talks for a deal that would give the Windows maker continued access to critical OpenAI technology in the future, Bloomberg News reported on Tuesday, citing two people familiar with the negotiations. The companies have discussed new terms that would allow Microsoft to use OpenAI's latest models and technology even if the ChatGPT maker declares it has achieved artificial general intelligence (AGI), or AI that surpasses human intelligence, the report said. A clause in OpenAI's current contract with Microsoft will shut the software giant out of some rights to the startup's advanced technology when it achieves AGI. Negotiators have been meeting regularly, and an agreement could come together in a matter of weeks, Bloomberg News reported. OpenAI did not immediately respond to a Reuters request for comment, while Microsoft declined to comment. OpenAI needs Microsoft's approval to complete its transition into a public-benefit corporation. The two have been in negotiations for months to revise the terms of their investment, including the future equity stake Microsoft will hold in OpenAI. Last month, the Information reported that Microsoft and OpenAI were at odds over the AGI clause. OpenAI is also facing a lawsuit from Elon Musk, who co-founded the company with Sam Altman in 2015 but left before it surged in popularity, accusing OpenAI of straying from its founding mission — to develop AI for the good of humanity, not corporate profit. Microsoft is set to report June-quarter earnings on Wednesday, with its relationship with OpenAI in the spotlight, as the startup turns to rivals Google (GOOGL.O), opens new tab, Oracle and CoreWeave (CRWV.O), opens new tab for cloud capacity.
CNA
7 hours ago
- Business
- CNA
Microsoft in advanced talks for continued access to OpenAI tech, Bloomberg reports
Microsoft is in advanced talks for a deal that would give the Windows maker continued access to critical OpenAI technology in the future, Bloomberg News reported on Tuesday, citing two people familiar with the negotiations. The companies have discussed new terms that would allow Microsoft to use OpenAI's latest models and technology even if the ChatGPT maker declares it has achieved artificial general intelligence (AGI), or AI that surpasses human intelligence, the report said. A clause in OpenAI's current contract with Microsoft will shut the software giant out of some rights to the startup's advanced technology when it achieves AGI. Negotiators have been meeting regularly, and an agreement could come together in a matter of weeks, Bloomberg News reported. OpenAI did not immediately respond to a Reuters request for comment, while Microsoft declined to comment. OpenAI needs Microsoft's approval to complete its transition into a public-benefit corporation. The two have been in negotiations for months to revise the terms of their investment, including the future equity stake Microsoft will hold in OpenAI. Last month, the Information reported that Microsoft and OpenAI were at odds over the AGI clause. OpenAI is also facing a lawsuit from Elon Musk, who co-founded the company with Sam Altman in 2015 but left before it surged in popularity, accusing OpenAI of straying from its founding mission — to develop AI for the good of humanity, not corporate profit. Microsoft is set to report June-quarter earnings on Wednesday, with its relationship with OpenAI in the spotlight, as the startup turns to rivals Google, Oracle and CoreWeave for cloud capacity.
Yahoo
8 hours ago
- Business
- Yahoo
Alamos Gold Inc. (AGI) Experiences Strong Stock Momentum Amid Rising Cost Pressures in 2025
Alamos Gold Inc. (NYSE:AGI) is included in our list of the . A closeup image of a miner holding a pile of gold nuggets, a representation of the company's royalty. For Alamos Gold Inc. (NYSE:AGI), this year is marked by strong stock momentum, evolving analyst expectations, and rising cost pressures. While AGI's shares are up 43.17% YTD, investor sentiment remains mixed after a challenging Q1. For the quarter, the company reported total cash costs of $1,193 per ounce, up from $910 a year earlier. At the same time, all-in sustaining costs increased to $1,805 from $1,265. Yet, the company's stable revenue and profitability offered some reassurance to investors. Following Q1 results, cautious optimism is noted among the analysts. On July 21, 2025, Stifel increased its price target from $33.61 to $35.08, maintaining a 'Buy' rating. Still, the analyst reduced its EPS estimates from $0.42 to $0.40. For FY2025 and FY2026, the analyst projected earnings at $1.63 and $2.07 per share, respectively. Meanwhile, on July 16, National Bank lowered its price target on Alamos Gold Inc. (NYSE:AGI) from $38.18 to $37.27, maintaining an 'Outperform' rating. With a presence in Canada, Mexico, and the United States, Alamos Gold Inc. (NYSE:AGI) is focused on producing gold. It is included in our list of the best gold stocks. While we acknowledge the potential of AGI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 11 Most Undervalued Cloud Stocks Under $10 According to Hedge Funds and 11 Best Mineral Stocks to Buy According to Hedge Funds. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Business
- Yahoo
Microsoft in talks to maintain access to OpenAI's tech beyond AGI milestone
Microsoft is reportedly in advanced talks with OpenAI for a new agreement that would give it ongoing access to the startup's technology even if OpenAI achieves what it defines as AGI, or advanced general intelligence. If the deal goes through, it would clear a key hurdle in OpenAI's transition toward becoming a fully commercial enterprise. The companies have been negotiating regularly, and they could come to an agreement in a few weeks, Bloomberg reports, citing three anonymous sources. The report cited some of the sources as saying that while the talks have been positive, other roadblocks could emerge in the form of regulatory scrutiny and Elon Musk's lawsuit to block OpenAI's for-profit transition. OpenAI is currently structured as a mission-driven non-profit that oversees a capped for-profit company – a setup that's meant to limit how fully it can commercialize or raise money. That structure hasn't stopped it from raising billions and operating like a traditional tech company, but OpenAI still wants to shake off its constraints. Microsoft, OpenAI's biggest backer with $13.75 billion invested and rights to some of the ChatGPT maker's IP, has put up meaningful roadblocks to OpenAI's future as a for-profit company, with talks dragging on for months. Microsoft wants a bigger stake in the restructured company and seeks to secure its access to OpenAI's tech beyond the current deal, which ends in 2030 or whenever OpenAI says it has achieved AGI — though no one can really agree on what that means. Microsoft has built its Azure OpenAI Service around the smaller company's models, and has integrated the startup's tech into Copilot across Windows, Office, and Github. If OpenAI suddenly declares it has achieved AGI and cuts off access, Microsoft would lose a huge strategic advantage. The ChatGPT maker has reportedly also told its investors that it expects to pay Microsoft a lower share of its revenue as it progresses. A source told Bloomberg that OpenAI also hopes to guarantee that Microsoft deploys OpenAI's technology safely, especially as it nears AGI. Microsoft also stands to gain from OpenAI becoming a for-profit company. The current setup caps investor returns, so a more standard structure would give Microsoft a chance to receive formal equity and significant returns, in addition to access to OpenAI's tech. Bloomberg reports that the two companies have been negotiating an equity stake for Microsoft in the low- to mid-30% range.
