Microsoft in Advanced Talks to Secure Extended Access to OpenAI’s AGI Technology

 

 

Microsoft and OpenAI are reportedly in advanced negotiations to extend Microsoft’s access to OpenAI’s technology even after the AI research company achieves Artificial General Intelligence (AGI). Currently, under their existing agreement, Microsoft would lose access to any new OpenAI technology once OpenAI’s board confirms the achievement of AGI.

This clause has been a major hurdle for OpenAI as it works toward restructuring into a for-profit benefit corporation, a move aimed at attracting more investors and operating like a traditional startup. The new agreement under discussion could remove these barriers, giving Microsoft, which has invested approximately $13.75 billion in OpenAI, continued access to its advanced AI models and intellectual property.

OpenAI, founded in 2015 as a nonprofit AI research organization, introduced OpenAI LP as a for-profit arm to support its growth. Reports indicate that Microsoft and OpenAI have been renegotiating their partnership since OpenAI announced its restructuring plans. These talks reportedly focus on Microsoft’s equity stake, its continued role as OpenAI’s exclusive cloud provider, its rights to use OpenAI’s IP, and its 20% revenue share from OpenAI’s operations.

The discussions come as OpenAI prepares for a potential initial public offering (IPO), though the timeline depends on market conditions and company readiness. If finalized, this extended partnership could secure Microsoft’s position as a key player in the AI ecosystem, ensuring it benefits from OpenAI’s cutting-edge AI advancements, including future AGI developments.

While both companies declined to comment on the ongoing talks, sources suggest that a deal could be finalized in the coming weeks.