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OpenAI is in talks to eliminate a clause that would lock Microsoft out of cutting-edge models if the startup achieves “artificial general intelligence” in a bid to free up billions of dollars in future investment.
Under current terms, if OpenAI creates AGI (defined as “a highly autonomous system that outperforms humans at the most economically valuable tasks”), Microsoft will no longer have access to such technology. Masu. The OpenAI board determines when AGI is achieved.
The startup is considering removing this provision from its corporate structure to allow big tech groups to continue investing in and accessing all OpenAI technologies even after achieving AGI, according to people familiar with the discussions. It is said that there is It added that no final decision had been made and options were being discussed by the board.
This provision was included to protect potentially powerful technology from being exploited for commercial purposes, and gave non-profit boards ownership of the technology. According to OpenAI’s website, “AGI is expressly dissociated from all commercial and IP license agreements.”
But the clause could limit the value of the partnership for Microsoft, which has committed more than $13 billion to OpenAI, and could discourage Big Tech groups from investing further.
More funding will be needed given the eye-opening costs of developing advanced AI models in competition with deep-pocketed rivals like Google and Amazon.
The San Francisco-based group, led by Sam Altman, was recently valued at $150 billion and is currently in the process of reorganizing into a public benefit corporation. This move marks a departure from its origins as a non-profit research institution.
As part of the changes, OpenAI is discussing new terms with investors, including its largest shareholder Microsoft, according to people familiar with the conversations.
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“When we started, we had no idea that we would become a product company or that the capital requirements would be so large,” Altman said Wednesday at a New York Times conference. “If we had known about those things, we would have chosen a different structure.”
“We also said that our intention was to treat AGI as a mile marker along the way. We left some flexibility because we don’t know what’s going to happen,” Altman added. Altman may acquire his first direct stake in OpenAI as part of the restructuring.
Increasingly, those at OpenAI are moving away from defining AGI as a single point, emphasizing instead that AGI is a continuous process and defined by broader society.
OpenAI began raising external capital in 2019, receiving a $1 billion investment from Microsoft that same year. At the time, the company said it intended to “license some of its pre-AGI technology to Microsoft” to cover the costs of developing cutting-edge AI.
OpenAI advised backers to consider investing “in the spirit of giving, with the understanding that it may be difficult to know what role money will play in a post-AGI world.” .
But its steady shift to a for-profit organization has drawn strong criticism from rivals, including OpenAI’s early backer and co-founder Elon Musk.
The Tesla billionaire, who went on to found rival startup xAI, recently filed a lawsuit against OpenAI and Microsoft, accusing Altman of “Shakespearean deception” and threatening a commercial partnership with Microsoft. requested that it be revoked.
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As part of the proposed restructuring, the ChatGPT maker also plans to maintain an independent nonprofit entity that would hold shares in the new public benefit corporation and possibly a trust, according to people familiar with the discussions. It is said that it will become. The nonprofit will have access to research and technology, but will be solely focused on pursuing OpenAI’s mission to benefit humanity.
OpenAI declined to comment on the details of the restructuring negotiations, but OpenAI board chairman Brett Taylor said the nonprofit’s board is “committed to ensuring the company continues to be well-positioned.” “We are focused on fulfilling our fiduciary duties.” Advances our mission to ensure AGI benefits all humanity. ”
He further added: “While our work is ongoing as we continue to consult with independent financial and legal advisors, any potential restructuring will ensure that our nonprofit organization continues to survive and thrive and that our for-profit You will receive the full amount of OpenAI’s current equity, which will enhance your ability to pursue your mission. ”
Microsoft declined to comment.
Additional reporting by Madhumita Murjia in London
