What you need to know
- A new report suggests OpenAI plans to scrap the clause that would void its partnership with Microsoft after hitting the AGI benchmark.
- The move could be OpenAI’s way of securing future investment for its AI advances via Microsoft by giving it extended access to advanced AI models post-AGI.
- Microsoft CEO Satya Nadella indicated that the only natural cause of action would be to sever their ties after OpenAI hits the AGI benchmark. However, its main goal is to achieve the superintelligence benchmark.
Microsoft’s partnership with OpenAI is complicated at best following the latter’s multi-billion investment in the ChatGPT maker and deep integration across its tech stack. The Redmond giant’s employees have blatantly expressed concern about the partnership, indicating that the company has seemingly become “a glorified IT department for the hot startup.”
Earlier this year, Microsoft was under scrutiny by the EU antitrust watchdogs because of its hefty investment in the AI firm. However, the regulatory body quickly established that the investment didn’t constitute an acquisition by the Redmond giant, prompting it to back off.
In an interview with Wired’s Steven Levy, Microsoft CEO Satya Nadella revealed intricate details regarding the company’s partnership with OpenAI. The CEO shot down reports that it had attempted to acquire OpenAI, citing its non-profit business model.
Nadella explained a “complicated workaround” Microsoft devised alongside OpenAI, designed to create a for-profit entry that let them generate revenue. The executive also acknowledged the existence of a cap limiting how much profit the collaboration can accumulate.
At this point, Satya Nadella indicated that the only natural cause of action would be to sever their ties, but the main goal is to hit the superintelligence benchmark.
As you may know, OpenAI CEO Sam Altman indicated that AGI might be here sooner than anticipated and that it would have “surprisingly little” societal change. He also detailed that the coveted superintelligence might only be “a few thousand days away” from the ChatGPT maker’s doorstep.
OpenAI is reportedly rethinking the profit cap to secure future investment
According to a new report by the Financial Times, OpenAI is trying to find a way around the cap to restrict Microsoft from accessing its advanced AI models after hitting the AGI moment.
Microsoft is arguably OpenAI’s largest investor, with a 49% stake in the company. Alongside NVIDIA, Thrive Capital, and other key investors, Microsoft raised $6.6 billion in the ChatGPT maker’s recent round of funding, pushing its market cap well beyond $157 billion.
The ChatGPT maker’s attempt to scrap the clause that would lock out Microsoft from accessing advanced AI models, which essentially constitute AGI, could be a move to secure future investment from the company. For context, the clause is in place to protect the sophisticated technology from being misused for commercial purposes.
A separate report suggested OpenAI could suffer losses of up to $44 billion before making a profit in 2029. Market analysts and experts attributed the findings partly to OpenAI’s tie-up with Microsoft.
OpenAI is currently under pressure to turn into a for-profit entity in the next two years or risk refunding the money raised during its latest round of funding. Failure to meet this requirement could open up a can of worms, including outsider interference and potential hostile takeovers from Microsoft (speculations indicate the tech giant could acquire OpenAI within three years).
This news comes at a crucial time when market analysts and experts suggest the AI bubble is fading, causing investors to channel their funds elsewhere. For context, a separate report indicates that 30% of AI projects will be abandoned by 2025 after proof of concept.
