The definition of artificial general intelligence (AGI) is reportedly a key point of contention between OpenAI & Microsoft that could undo their deal.

The article on Wired (OpenAI’s Unreleased AGI Paper Could Complicate Microsoft Negotiations, written by Kylie Robison and available here) discusses that the partnership between OpenAI and Microsoft in many ways hinges on the definition of artificial general intelligence, creating a tension that has spilled over into OpenAI research that has not been made public.

A clause inside OpenAI’s contract with Microsoft states that if OpenAI’s board ever declares it has developed artificial general intelligence (AGI), it would limit Microsoft’s contracted access to the startup’s future technologies. Microsoft, which has invested more than $13 billion in OpenAI, is now reportedly pushing for the removal of the clause and is considering walking away from the deal entirely, according to the Financial Times.

According to the Wall Street Journal, OpenAI has even considered whether to invoke the clause based on an AI coding agent. The talks have grown so fraught that OpenAI has reportedly discussed if it should publicly accuse Microsoft of anticompetitive behavior, per the Journal.

Late last year, tensions around AGI’s suddenly pivotal role in the Microsoft deal spilled into a debate within OpenAI over an internal research paper, according to multiple sources familiar with the matter. Titled “Five Levels of General AI Capabilities,” the paper outlines a framework for classifying progressive stages of AI technology. By making specific assertions about future AI capabilities, sources claim, the paper could have complicated OpenAI’s ability to declare that it had achieved AGI, a potential point of leverage in negotiations.

Sources believe that the paper seemed to be in final stages, and the company had hired a copy editor to finalize the work late last year along with generating visuals for a blog announcing the paper. OpenAI’s partnership with Microsoft was cited internally as one reason to hold off on publishing the paper, according to multiple sources who spoke to WIRED on the condition of anonymity as they were not permitted to speak to the press. However, OpenAI spokesperson Lindsay McCallum said in a comment to WIRED that “it’s not accurate to suggest we held off from sharing these ideas to protect the Microsoft partnership.” Another source familiar with the matter said that the paper wasn’t released because it didn’t meet technical standards.

So, what do you think? Are you surprised that such a major deal could be undone over simply the definition of artificial general intelligence? Please share any comments you might have or if you’d like to know more about a particular topic.

Image created using Microsoft Designer, using the term “two robot businessmen engaged in a tug of war”.

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