The conflict between OpenAI and Microsoft is heating up over a contract clause related to artificial general intelligence (AGI). Microsoft, OpenAI’s largest outside investor, is blocking a planned company restructuring ahead of a possible IPO. The goal: to remove a clause that allows OpenAI to cut Microsoft’s access to its technology if AGI is achieved.
A 2019 agreement also reportedly prevents Microsoft from developing its own AGI until 2030. Disagreements over how AGI is defined, revenue sharing, and intellectual property rights are making things worse. Microsoft is now working on its own models to reduce its reliance on OpenAI.