The partnership between Microsoft and OpenAI is facing significant strain due to disagreements over an artificial general intelligence (AGI) clause in their multi-billion-dollar agreement. This provision, allowing OpenAI to limit Microsoft’s access to its technologies upon declaring AGI, was initially set in 2019 but is now under scrutiny as OpenAI executives, including CEO Sam Altman, believe they are close to achieving AGI. Microsoft, which has invested over $10 billion in OpenAI and integrated its models into its services, wants the clause removed, while OpenAI has resisted. The ongoing dispute complicates OpenAI’s efforts to convert its for-profit arm into a public-benefit corporation, which requires Microsoft’s approval. Both companies have publicly emphasized their collaborative relationship, despite underlying commercial tensions and differing views on AGI. Talks are ongoing, with hopes to resolve the issues while maintaining a long-term partnership.
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