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OpenAI Reconsiders Clause That Would Limit Microsoft’s Access to Its Most Advanced AI Models
OpenAI is in discussions to remove a provision that limits Microsoft’s access to its most advanced artificial intelligence (AI) models when the start-up achieves "artificial general intelligence" (AGI).
The agreement
Under current terms, when OpenAI creates AGI, which is defined as a "highly autonomous system that outperforms humans at most economically valuable work," Microsoft’s access to such technology would be void. The OpenAI board would determine when AGI is achieved.
The change
The start-up is considering removing the stipulation from its corporate structure, enabling Microsoft to continue investing in and accessing all OpenAI technology after AGI is achieved, according to multiple people with knowledge of the discussions. A final decision has not been made, and options are being discussed by the board.
The clause
The provision was included to protect the potentially powerful technology from being misused for commercial purposes, giving ownership of the technology to its non-profit board. According to OpenAI’s website: "AGI is explicitly carved out of all commercial and IP licensing agreements."
The impact
But the provision potentially limits the value of its partnership for Microsoft, which has pumped more than $13bn into OpenAI, and could disincentivise the Big Tech group from further investment. More funding will be needed given the eye-watering costs involved in developing advanced AI models in a race against deep-pocketed rivals such as Google and Amazon.
The future of OpenAI
The San Francisco-based group led by Sam Altman, which was recently valued at $150bn, is currently restructuring to become a public benefit corporation. That move represents a departure from its origins as a not-for-profit research lab.
The OpenAI board
As part of the changes, OpenAI is discussing new terms with investors, including its largest shareholder Microsoft, according to multiple people familiar with the conversations.
What does this mean for OpenAI?
When we started, we had no idea we were going to be a product company or that the capital we needed would turn out to be so huge," Altman told a New York Times conference on Wednesday. "If we knew those things, we would have picked a different structure."
What is AGI?
Increasingly, people at OpenAI have moved away from defining AGI as a single point, instead emphasising it is a continuous process and will be defined by wider society.
The future of AI
OpenAI began raising outside capital in 2019, receiving a $1bn investment from Microsoft that year. At the time, the company said it intended "to license some of our pre-AGI technologies" to Microsoft to cover the costs of developing cutting-edge AI.
Conclusion
OpenAI’s decision to restructure and remove the AGI clause could have significant implications for its partnership with Microsoft and the future of AI development.
FAQs
Q: What is AGI?
A: AGI is defined as a "highly autonomous system that outperforms humans at most economically valuable work."
Q: What is the current agreement between OpenAI and Microsoft?
A: The current agreement limits Microsoft’s access to OpenAI’s most advanced AI models when the start-up achieves AGI.
Q: How much has Microsoft invested in OpenAI?
A: Microsoft has pumped more than $13bn into OpenAI.
Q: What is OpenAI’s current valuation?
A: OpenAI was recently valued at $150bn.
Q: Who leads OpenAI?
A: Sam Altman leads OpenAI.
