Microsoft & OpenAI Reportedly Closing In A New Deal to Extend Access to AI Tech After AGI Breakthrough

According to a new report by Bloomberg, Microsoft and OpenAI are reportedly close to finalizing a new agreement that would ensure Microsoft retains access to OpenAI’s technology. That too, even after OpenAI achieves artificial general intelligence (AGI).

Under the companies’ existing partnership, Microsoft would lose access to new OpenAI technologies once the AI firm’s nonprofit board officially declares the arrival of AGI.

For the uninitiated, that clause has become a key obstacle as OpenAI works to transition into a for-profit structure, according to people familiar with the matter. Talks between the two AI giants have been ongoing since late last year.

The potential new deal would likely remove the AGI clause and redefine how Microsoft interacts with OpenAI’s technologies in the long term. While nothing has been signed yet, sources say a deal could be reached within weeks.

Microsoft has invested nearly $14 billion into OpenAI and is tightly integrated into its ecosystem, hosting the company’s models on Azure and embedding them across its products, from Microsoft 365 to GitHub Copilot.

However, questions around Microsoft’s stake and long-term rights over OpenAI’s technology have reportedly slowed OpenAI’s restructuring efforts.