OpenAI and Microsoft have a secret definition of “AGI,” short for general artificial intelligence, and any system that can outperform humans in many tasks. According to leaked documents obtained by Informationthe two companies agreed in 2023 that AGI will be acquired once OpenAI has developed an AI system that can generate at least $100 billion in revenue.
There has long been a debate in the AI community about what AGI actually means, or whether computers will ever be good enough to surpass humans in many tasks and take over large parts of the economy.
The term “artificial intelligence” itself is a misnomer because a large part of it is a prediction machine, which takes keywords and searches large amounts of data without really understanding the underlying concepts. But OpenAI has received more than $13 billion in funding from Microsoft over the years, and that money came with a strange contractual agreement that OpenAI would stop letting Microsoft use any new technology it develops after AGI is acquired.
OpenAI was founded as a non-profit organization under the assumption that its technology was supposed to benefit humanity. The logic behind cutting Microsoft once AGI is achieved is that AGI will cause harm to humanity at the hands of a for-profit company. In order to invest the nonprofit’s billions, Microsoft’s current agreement with OpenAI guarantees it a slice of the profits until it reaches a pre-determined amount somewhere in the tens of billions; the conclusion is made to ensure that most of the profit goes back to construction products that benefit humanity, so-called.
As is well documented at this point, OpenAI is no longer interested in this non-profit model, because the structure makes it difficult to raise more money and compete with other AI players. Since October, Information It says Microsoft and OpenAI have been discussing changes to their arrangement, including the tech giant acting as OpenAI’s exclusive cloud hosting provider.
Microsoft and OpenAI have been at cross paths for a while now. It has recently been reported that the latter has started incorporating AI models developed in-house into its 365 Copilot product to improve cost and efficiency. It doesn’t make sense for Microsoft to continue to rely on OpenAI, an independent company, for technology it believes will be the backbone of its productivity software going forward. Microsoft needs proprietary technology.
OpenAI, on the other hand, is so far from achieving a $100 billion profit in technology that its real value remains speculative, which means that it will have to continue to provide its technology to Microsoft for a long time – not good if it looks like they are heading. being rivals. And offering a large amount of income makes it unattractive to new investors, which it will need as it continues to burn cash. Terminating a cloud hosting agreement may also allow OpenAI to negotiate better hosting costs with another provider.
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