Microsoft is currently in advanced talks with OpenAI to lock in long-term access to the company’s most powerful AI models—both through and beyond the year 2030. According to sources cited by Bloomberg, the two companies are close to finalizing a deal, possibly within the next few weeks.
What is AGI, and Why Does It Matter Here?
AGI, or Artificial General Intelligence, refers to AI systems capable of understanding and performing intellectual tasks at a level equal to or greater than that of humans. Under the current agreement between the two firms, Microsoft could lose access to OpenAI’s most cutting-edge models if OpenAI were to announce that it had achieved AGI.
Since there’s no universally accepted definition of AGI, Microsoft is looking to revise this clause to prevent a scenario where OpenAI could unilaterally cut them off.
What Are the Key Points of the New Agreement?
- Continued Access Beyond 2030: The existing contract ends in 2030. Microsoft is negotiating rights to continue using OpenAI’s models well past that date. Reports have suggested OpenAI has considered moving away from the partnership to gain more flexibility in securing new collaborators—especially as it shifts towards becoming a for-profit entity.
- No Cutoff After AGI Milestone: Microsoft wants to ensure that even if OpenAI announces the arrival of AGI, their access to key technologies—used in products like Copilot and Azure OpenAI services—remains intact.
- Ownership Stake in the New Structure: As OpenAI transitions into a public-benefit corporation, Microsoft is aiming for a 30–35% equity stake. In return, it seeks to secure long-term rights over model usage and intellectual property.
- Revenue Share Adjustments: OpenAI is looking to reduce the share of revenue it gives to Microsoft, from about 20% to closer to 10% by 2030. This point is still being negotiated.
- Responsible Use Commitments: OpenAI wants firm commitments from Microsoft to deploy its models in safe and ethical ways, particularly if AGI capabilities become a reality.
Why Is This Deal Crucial for Microsoft?
Microsoft has invested over $13 billion into OpenAI and has deeply embedded its models into its software and cloud offerings. Losing access at a pivotal moment—such as the announcement of AGI—would be a major blow to its AI strategy. With competitors like Google, Oracle, and new players from China entering the scene with open-source solutions, maintaining its edge is critical.
The company has gone all-in on artificial intelligence, even hiring more than two dozen employees away from Google’s DeepMind. For Microsoft, AI isn’t just a tech trend—it’s central to their vision of the future. They’re clearly willing to invest heavily to stay ahead.
