Microsoft and OpenAI drop AGI clause from partnership deal; OpenAI gains freedom to work with competing cloud providers

On Monday, Microsoft and OpenAI announced major changes to their partnership: OpenAI can now serve products to customers across any cloud provider (not just Azure), though Microsoft remains the 'primary cloud partner' and will receive a cut of revenue from outside agreements. Microsoft's IP rights to OpenAI's models extend through 2032, but are now non-exclusive.

The companies killed the contract's 'AGI clause,' which previously set conditions if either company achieved artificial general intelligence (AI systems that equal or surpass human intelligence on a wide range of tasks). Revenue-share payments from OpenAI to Microsoft will now only continue through 2030 at the same percentage, subject to a total cap, and will continue 'independent of OpenAI's technology progress'—meaning they no longer hinge on AGI being declared.

This is the second renegotiation of AGI terms since OpenAI's for-profit restructuring in October. Previously, Microsoft would have lost its rights to OpenAI's technology once AGI was reached; now there is no independent panel to declare AGI, no if-this-then-that contract language, and OpenAI may never have to announce if it reaches that milestone.