Microsoft and OpenAI Tie AGI Definition to $100 Billion Profit Target
Microsoft and OpenAI reportedly define artificial general intelligence not by technical benchmarks, but by OpenAI's ability to generate $100 billion in profits. This financial agreement ensures Microsoft retains access to OpenAI's technology for years to come.
Microsoft and OpenAI rely on a strictly financial definition of artificial general intelligence (AGI) rather than a technical or philosophical one. According to a new report, the two companies sign an agreement stating OpenAI only achieves AGI when it develops AI systems capable of generating at least $100 billion in profits. This monetary benchmark drastically differs from the capabilities-based definitions that many AI researchers expect.
This profit-centric definition has major implications for the ongoing partnership between the two tech giants. Under the terms of their agreement, Microsoft loses access to OpenAI's technology once the startup officially reaches AGI. Because OpenAI currently loses billions of dollars and does not expect to turn a profit until 2029, this financial threshold effectively guarantees Microsoft continued access to OpenAI's models for at least a decade.
The recent release of OpenAI's o3 model sparks debate about the startup's progress toward AGI, but the new profit requirements put this progress into perspective. While o3 shows impressive performance improvements, it also demands significant compute costs that hinder immediate profitability. Consequently, despite any technical leaps forward, OpenAI remains many years away from satisfying the lucrative financial conditions required to declare AGI under its unique agreement with Microsoft.