04 January 2025

Microsoft and OpenAI have a financial definition of AGI: Report

Microsoft and OpenAI have a very specific, internal definition of artificial general intelligence (AGI) based on the startup’s profits, according to a new report from The Information

Microsoft and OpenAI redefine the meaning of AGI with a focus on profits

OpenAI and Microsoft logos

It appears that Microsoft and OpenAI have defined artificial general intelligence, or AGI, in a very novel way as part of their agreement to let Microsoft use OpenAI's AI models. Under their definition, AGI is achieved when OpenAI can turn a profit of $100 billion from its AI systems.
The definition is far from what anyone would consider a good definition of AGI.
And by this definition, OpenAI is many years away from reaching it.
The two companies reportedly signed an agreement last year stating OpenAI has only achieved AGI when it develops AI systems that can generate at least $100 billion in profits. That’s far from the rigorous technical and philosophical definition of AGI many expect.
This year, OpenAI is reportedly set to lose billions of dollars, and the startup tells investors it won’t turn a profit until 2029.
This is an important detail because Microsoft loses access to OpenAI’s technology when the startup reaches AGI, a nebulous term that means different things to everyone.

Microsoft and OpenAI Wrangle Over Terms of Their Blockbuster Partnership

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