Microsoft and OpenAI Task Experts to Predict AGI Arrival

OpenAI has made significant changes to its operational framework, particularly in relation to its partnership with Microsoft. This shift came in response to regulatory feedback and public pressure, resulting in a new agreement that modifies the way OpenAI controls its for-profit ventures.

Microsoft and OpenAI’s Partnership Evolution

In May, OpenAI decided against fully transitioning to a for-profit entity. Instead, it has opted for a structure that allows a nonprofit board to maintain oversight while restructuring its for-profit subsidiary into a public benefit corporation (PBC).

Key Changes in the Agreement

• The extension of Microsoft’s intellectual property (IP) rights through 2032.
• This encompasses models created after the declaration of Artificial General Intelligence (AGI).
• Microsoft retains rights related to OpenAI’s model weights, architecture, inference, and fine-tuning code until the expert panel confirms AGI, or through 2030, whichever comes first.
• OpenAI is allowed to publicly release certain open-weight models that meet specific criteria.
• Microsoft’s rights to OpenAI’s research methods, which are confidential techniques used in development, will expire at set thresholds.
• The deal clarifies that Microsoft does not have rights to OpenAI’s consumer hardware products.

Flexible Development and Collaboration Opportunities

The new agreement allows OpenAI to collaborate with third parties while retaining Microsoft as its primary infrastructure provider. API products built with partners must utilize Microsoft Azure; however, other product types are permitted to operate on any cloud platform.

Moreover, Microsoft can now independently pursue AGI development, either alone or in collaboration with parties other than OpenAI. If Microsoft employs OpenAI’s IP to develop AGI before the expert panel’s declaration, the resulting models must surpass current leading AI in training requirements.

Financial Commitments and Future Outlook

The revenue-sharing model between Microsoft and OpenAI will remain in effect until AGI verification by the expert panel. However, payments are expected to be distributed over an extended timeline.

• OpenAI has pledged to purchase $250 billion in Azure services.
• Microsoft will no longer have the right of first refusal for serving as OpenAI’s compute provider.

This adjustment indicates that OpenAI will have the freedom to explore alternative cloud infrastructure options if necessary, though its substantial commitment to Azure suggests a continued reliance on Microsoft’s services.