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Microsoft and OpenAI's AGI Fight Is Bigger Than a Contract

I first learned about The Clause from Microsoft CEO Satya Nadella. During an interview with him in May 2023, I asked about the deal between Microsoft and OpenAI that granted his company exclusive access to the startup’s groundbreaking AI technology. I knew the contract had set a cap on how much profit Microsoft could make from the arrangement, and I asked him what would happen if and when that point was reached. The answer was a bit puzzling. “Fundamentally, their long-term idea is we get to su

OpenAI’s Unreleased AGI Paper Could Complicate Microsoft Negotiations

A small clause inside OpenAI’s contract with Microsoft, once considered a distant hypothetical, has now become a flashpoint in one of the biggest partnerships in tech. The clause states that if OpenAI’s board ever declares it has developed artificial general intelligence (AGI), it would limit Microsoft’s contracted access to the startup’s future technologies. Microsoft, which has invested more than $13 billion in OpenAI, is now reportedly pushing for the removal of the clause and is considering