OpenAI and Microsoft Redefine AGI: A $100 Billion Profit Benchmark

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OpenAI and Microsoft have agreed on a new definition of Artificial General Intelligence (AGI), tying it to a $100 billion profit benchmark. This shift marks a significant change in how AI success is measured and could reshape the AI industry's future.

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OpenAI and Microsoft's New AGI Definition

OpenAI and Microsoft have jointly redefined Artificial General Intelligence (AGI), marking a significant shift in the AI industry. According to leaked documents, the two companies agreed in 2023 that AGI will be achieved when an AI system can generate at least $100 billion in profits 1. This new definition departs from the traditional understanding of AGI as a system capable of performing a wide range of tasks at or above human levels 2.

Implications for OpenAI and Microsoft's Partnership

The redefinition of AGI has significant implications for the partnership between OpenAI and Microsoft. Their agreement stipulates that once AGI is achieved, Microsoft would lose access to OpenAI's most advanced models 3. This clause ensures that AGI technology would not be in the hands of a for-profit company, aligning with OpenAI's original nonprofit mission 3.

Financial Aspects and Future Projections

OpenAI is currently far from achieving the $100 billion profit benchmark. The company expects to incur billions in losses this year and has informed investors that it won't become profitable until 2029 1. Microsoft's investment of over $13 billion in OpenAI comes with a profit-sharing agreement, capped at tens of billions of dollars 3.

Debate and Criticism

The new definition has sparked debate within the AI community. Critics argue that defining AGI based on financial outcomes is a commercial perspective rather than a technical one, failing to capture the fundamental characteristics of AGI related to cognitive abilities, adaptability, and autonomy 1.

Evolving Strategies and Competition

Both OpenAI and Microsoft are adapting their strategies in response to the evolving AI landscape. OpenAI is reportedly trying to remove the AGI clause from its agreement with Microsoft, potentially to secure further investments 4. Meanwhile, Microsoft is diversifying its AI portfolio by incorporating in-house and third-party AI models into its products, reducing its dependence on OpenAI 4.

Future of AI Development

The redefinition of AGI by OpenAI and Microsoft highlights the growing emphasis on connecting AI advancements to real-world economic value. This shift from theoretical progress to practical applications could significantly influence the direction of AI research and development in the coming years 2.

Renegotiation and Potential Changes

Reports suggest that OpenAI is attempting to renegotiate its agreement with Microsoft. The discussions reportedly cover four key areas: Microsoft's equity stake in a potential for-profit OpenAI, Azure's role as OpenAI's exclusive cloud provider, Microsoft's rights to future AI models, and the revenue-sharing arrangement 5.

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