Microsoft Seeks Long-Term Access to OpenAI Technology

Microsoft is in advanced talks with OpenAI to secure continued access to its technology, even after the startup achieves artificial general intelligence (AGI). 

The negotiations, if successful, would ensure Microsoft’s strategic position remains intact as OpenAI moves toward full commercialization.

Protecting an Investment

Microsoft has invested $13.75 billion into OpenAI. It has built critical tools like Copilot into products such as Windows, Office, and GitHub. 

This partnership runs through Microsoft’s Azure OpenAI Service, which delivers OpenAI models to enterprise users.

However, the current agreement ends in 2030 or earlier, if OpenAI declares it has reached AGI. 

That clause creates uncertainty. Microsoft now wants an updated deal that guarantees ongoing access, regardless of whether OpenAI claims AGI has been achieved.

AGI

AGI, or Artificial General Intelligence, is an AI system that can perform any intellectual task a human can. 

The problem is no one fully agrees on what AGI looks like or how to measure it. That vagueness creates risk for Microsoft. 

If OpenAI claims to reach AGI earlier than expected, it could end Microsoft’s access to its core models overnight. This risk has triggered Microsoft’s push to renegotiate its terms.

OpenAI

OpenAI was originally founded as a nonprofit. It added a “capped-profit” company structure to raise capital without compromising its mission. 

This model allows investors to earn a return, but within limits. OpenAI now wants to remove those limits and become a fully for-profit company. 

This would allow it to raise more money, operate more freely, and reward its backers more substantially. 

However, Microsoft has been cautious. The tech giant wants stronger rights, deeper equity, and long-term assurances. 

Microsoft’s Wants

Microsoft is pushing for a formal equity stake in the restructured company. According to Bloomberg, the company is seeking ownership in the low- to mid-30% range. 

This would offer Microsoft not just access to OpenAI’s tech, but also significant financial upside. 

More importantly, Microsoft wants language in the agreement that protects its use of OpenAI’s tools, even if OpenAI says it has achieved AGI.

Possible Roadblocks

Elon Musk has filed a lawsuit to prevent OpenAI from converting into a for-profit entity. His case may slow negotiations. 

Regulatory scrutiny could also delay or challenge the proposed changes. Yet both companies seem motivated to finalize the deal. 

Sources say an agreement could come within weeks if discussions continue to move forward.

OpenAI’s Priorities

OpenAI, for its part, is focused on safety. The company wants to ensure Microsoft will use its technology responsibly, especially as it grows more powerful. 

It has asked for safeguards in the agreement to guarantee ethical use, particularly if AGI is close.