Microsoft and OpenAI's Financial Definition of AGI: A New Perspective

Ever since Microsoft invested $1 billion in OpenAI in 2019, the two companies have been collaborating on developing artificial general intelligence (AGI) with widely distributed economic benefits. However, a recent report from The Information has shed light on a new aspect of their partnership: a financial definition of AGI that could significantly impact the timeline for achieving this technological milestone.

According to the report, Microsoft and OpenAI have signed an agreement stating that OpenAI has only achieved AGI when it develops AI systems that can generate at least $100 billion in profits. This profit-centric definition of AGI is a departure from the more rigorous technical and philosophical definitions that many expect. It also raises questions about the prioritization of profit over technical advancements and ethical considerations in the pursuit of AGI.

Under this definition, OpenAI is set to lose billions of dollars this year and won't turn a profit until 2029. This means that, under the current agreement, Microsoft would lose access to OpenAI's technology when the startup reaches AGI, which could be as late as 2029 or even later. This is a significant delay compared to OpenAI CEO Sam Altman's previous prediction that the company could achieve AGI by 2025.

The financial definition of AGI also has implications for Microsoft's investment in OpenAI. If OpenAI removes the clause that limits Microsoft's access to AGI-related technology, it could pave the way for continued investments from Microsoft, which has already poured over $13 billion into OpenAI's projects. However, this could also lead to a loss of oversight and control over how AGI is deployed and used, which could have ethical and societal implications.

OpenAI's shift to a public benefit corporation (PBC) is another factor to consider. As a PBC, OpenAI will be able to attract additional funding while maintaining a commitment to public benefit, which is a key aspect of its mission. However, this shift has sparked criticism, including from Elon Musk, a co-founder of OpenAI, who has filed a lawsuit to oppose the transition. Musk argues that the shift conflicts with OpenAI's original mission to prioritize public benefit.

In conclusion, Microsoft and OpenAI's financial definition of AGI raises important questions about the prioritization of profit over technical advancements and ethical considerations in the pursuit of AGI. As OpenAI transitions to a PBC and potentially removes the AGI safety clause with Microsoft, it will be crucial for both companies to navigate these complexities and maintain a balance between their foundational goals and financial requirements. Investors should closely monitor these developments, as they could have significant implications for the future of AI and the companies involved.